VanEck Emphasizes Bitcoin’s Growing Potential as a Store of Value

Jan van Eck, CEO of VanEck, a prominent global asset manager, brought new perspectives on Bitcoin in a recent appearance on CNBC’s “The Exchange” with Kelly Evans on December 15, 2023. His remarks highlight the growth continued and the potential of Bitcoin, pointing to a promising future in the digital asset market.

Van Eck highlighted VanEck’s pioneering role in the adoption of Bitcoin, recalling that the company was one of the first to apply for a Bitcoin-related ETF in 2017. Its interest in Bitcoin was motivated by its potential as a store of value, establishing a parallel with gold , a traditional VanEck focus. This anticipatory approach demonstrates the company’s vision to align innovation and tradition in the field of cryptocurrencies.

Noting Bitcoin’s significant growth since 2017, Van Eck compared it to gold in terms of serving as a store of value. Despite initial skepticism, he emphasized Bitcoin’s resilience and continued growth, drawing a parallel with the accelerated economic development in certain regions of China in recent decades. This growth is a testament to Bitcoin’s robustness and ability to adapt to market challenges.

Van Eck also addressed concerns about Bitcoin, including regulatory risks and use in illicit activities. He highlighted the widespread adoption of Bitcoin, now with a user base of approximately 50 million, arguing that this network effect strengthens its position as a leading digital asset and makes it difficult for it to be surpassed by other Internet-based forms of store of value.

The outlook for 2024 and the influence of interest rates were discussed. Van Eck predicts a favorable macroeconomic environment for Bitcoin and gold, especially with interest rates trending downward, and notes similarities in performance patterns between the two.

When it comes to SEC approval of spot Bitcoin ETFs, Van Eck expects a simultaneous approval process for multiple companies to avoid unfair advantages, similar to what happened with Ethereum futures. He expressed confidence in Bitcoin’s future performance, predicting that it will reach new highs in the next 12 months, influenced by the cryptocurrency’s maturation and upcoming halving event in April 2024.

Additionally, on December 7, 2023, VanEck revealed a series of predictions for the cryptocurrency market in 2024. These predictions include the anticipation of a US recession coinciding with the debut of the first spot Bitcoin ETFs, an influx of more than $2.4 billion for these ETFs in the first quarter of 2024, and a subsequent increase in the value of Bitcoin.

The company also projects that Bitcoin will reach a record high in the last quarter of 2024, driven by political and regulatory developments following the US presidential election. Furthermore, Ethereum is predicted to outperform major technology stocks, although it will not overtake Bitcoin in market dominance.

Among other trends, VanEck predicts a growth in blockchain use across industries, a notable rise of emerging networks like Hivemapper and Helium, and a significant advancement of KYC-compliant DeFi applications. These projections, as explained by VanEck, are illustrative and reflect the opinions of the authors on the date of publication, and are not investment recommendations.

At the time of publication, the price of BTC was quoted at US$42,518.29, up 1.6% in the last 24 hours.

Disclaimer:

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.