<\/p>\n
Asset management firm AllianceBernstein put out a memo last Monday not so subtly hyping bitcoin over gold, calling the cryptocurrency a \u201csafe haven asset.\u201d<\/p>\n
AllianceBernstein (AB) analysts highlight that aside from Bitcoin\u2019s inherent value stemming from its limited supply of 21 million coins \u2014 referred to as its \u201chard money properties\u201d \u2014 the asset\u2019s returns are undeniable.<\/p>\n
\u201cSince its inception, Bitcoin has consistently outperformed gold,\u201d AB analysts wrote in the Oct. 16 note. \u201cOver [the] last 3 years, Gold has been flat, while Bitcoin is up 150% (despite the 60% drawdown in 2022).\u201d<\/p>\n
And over the last five years, they wrote, bitcoin had five times better returns than gold.\u00a0\u00a0<\/p>\n
This note was written prior to the recent multi-day bitcoin rally, which began as early as Sunday night when bitcoin (BTC<\/a>) was trading at close to $30,000. It then peaked at $35,100<\/a> early Tuesday morning, before dipping to just under $34,000 at the time of publication.\u00a0<\/p>\n AB analysts also pointed out that bitcoin is such a young asset compared to gold, which had its first ETF tracking the commodity\u2019s price in 2004.\u00a0<\/p>\n In fact, speculation about a possible ETF is the very thing driving bitcoin\u2019s value up at the moment, even though some industry watchers believe this price action is premature<\/a> since ETF approvals are dependent on the US Securities and Exchange Commission. So far, the SEC has dragged its feet, delaying multiple spot bitcoin ETF applications<\/a> multiple times throughout 2023.\u00a0<\/p>\n According to AB, Bitcoin\u2019s main hurdle is its \u201cUX UI\u201d problem. This is an issue the analysts believe can be turned around with the advent of spot bitcoin ETF.<\/p>\n \u201cThe inaccessibility of crypto wallets and the treacherous track record of exchanges, has made Bitcoin inaccessible to the mainstream. The Bitcoin ETF would make Bitcoin accessible in broker accounts, well integrated with private banks and wealth managers\/advisors,\u201d AB analysts wrote.\u00a0<\/p>\n Grayscale could win the race to a bitcoin ETF since the SEC has declined to appeal an August ruling siding with Grayscale<\/a>. The DC Court of Appeals said the SEC blocking the firm\u2019s Bitcoin Trust (GBTC) to an ETF was \u201carbitrary and capricious<\/a>.\u201d<\/p>\n Don\u2019t miss the next big story \u2013 join our\u00a0free daily newsletter<\/a>.<\/strong><\/p>\n
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