{"id":46163,"date":"2024-03-16T18:54:47","date_gmt":"2024-03-16T18:54:47","guid":{"rendered":"https:\/\/manitimes.com\/bitcoin-may-lose-its-reputation-as-a-volatile-asset-heres-why\/"},"modified":"2024-03-16T18:54:47","modified_gmt":"2024-03-16T18:54:47","slug":"bitcoin-may-lose-its-reputation-as-a-volatile-asset-heres-why","status":"publish","type":"post","link":"https:\/\/manitimes.com\/bitcoin-may-lose-its-reputation-as-a-volatile-asset-heres-why\/","title":{"rendered":"Bitcoin may lose its reputation as a volatile asset. Here&#8217;s why"},"content":{"rendered":"<div id=\"SpecialReportArticle-ArticleBody-6\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"SpecialReportArticle-articleBody-6-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"\/><\/p>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-107385834\">\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-107385834\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000334022\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><img decoding=\"async\" class=\"InlineVideo-videoThumbnail\" src=\"https:\/\/image.cnbcfm.com\/api\/v1\/image\/107385851-1710189282ETF-SEG1-031124.jpg?v=1710189281&amp;w=750&amp;h=422&amp;vtcrop=y\" alt=\"With bitcoin at new highs, are spot funds fulfilling their promise?\"\/><span class=\"InlineVideo-videoButton\"\/><span\/><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>Bitcoin may start to lose its reputation as a volatile asset.<\/p>\n<p>According to Bitwise Asset Management&#8217;s Matt Hougan, the cryptocurrency&#8217;s wild price swings have come down substantially over the past decade.<\/p>\n<p>&#8220;What&#8217;s driving the bitcoin market right now is a simple demand-supply imbalance,&#8221; the firm&#8217;s chief investment officer told CNBC&#8217;s &#8220;ETF Edge&#8221; on Monday. &#8220;We have this huge new source of demand from these ETFs, and we have supply that&#8217;s inelastic.&#8221;<\/p>\n<p>On Jan. 11, the first bitcoin exchange-traded funds began trading. Since then, the asset is up more than 50%. <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"SpecialReportArticle-QuoteInBody-4\">Bitcoin<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> hit an all-time high this week of just under $74,000.<\/p>\n<p>Yet, Hougan acknowledges it may not be for everyone.<\/p>\n<p>&#8220;It moves around a lot. Some people find it difficult to understand,&#8221; Hougan said.<\/p>\n<p>While Bitwise is betting on bitcoin&#8217;s growth, ProShares has an ETF looking to profit from losses with its <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"SpecialReportArticle-QuoteInBody-5\">Short Bitcoin Strategy ETF<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span>. It&#8217;s down 42% so far this year and has plummeted almost 70% over the past year.<\/p>\n<p>&#8220;To quote Mark Twain, &#8216;The reports of our death have been quite exaggerated,'&#8221; ProShares&#8217; Simeon Hyman told CNBC. &#8220;We&#8217;re happy to be here, and we think we&#8217;re serving as a key alternative.&#8221;<\/p>\n<p>Hyman, the firm&#8217;s global investment strategist, notes bitcoin&#8217;s historic strength has been going on a lot longer than the launch of the spot bitcoin ETFs.<\/p>\n<p>&#8220;This is the month of the anniversary of the collapse of crypto-linked financial institutions. Last year, bitcoin was going up then, too,&#8221; Hyman said. &#8220;I think there are longer-term folks who are starting to come in for asset allocation and diversification purposes.&#8221;<\/p>\n<p>Hyman&#8217;s ProShares also operates a long-bitcoin ETF: <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"SpecialReportArticle-QuoteInBody-6\">ProShares Bitcoin Strategy ETF.<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> It&#8217;s up 55% since Jan.1 and has gained 111% in the past year.<\/p>\n<p>As of Friday evening, bitcoin is up 180% over the past 12 months.<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin may start to lose its reputation as a volatile asset. According to Bitwise Asset Management&#8217;s Matt Hougan, the cryptocurrency&#8217;s wild price swings have come down substantially over the past decade. &#8220;What&#8217;s driving the bitcoin market right now is a simple demand-supply imbalance,&#8221; the firm&#8217;s chief investment officer told CNBC&#8217;s &#8220;ETF Edge&#8221; on Monday. &#8220;We<\/p>\n","protected":false},"author":2,"featured_media":46164,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/manitimes.com\/wp-json\/wp\/v2\/posts\/46163"}],"collection":[{"href":"https:\/\/manitimes.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/manitimes.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/manitimes.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/manitimes.com\/wp-json\/wp\/v2\/comments?post=46163"}],"version-history":[{"count":0,"href":"https:\/\/manitimes.com\/wp-json\/wp\/v2\/posts\/46163\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/manitimes.com\/wp-json\/wp\/v2\/media\/46164"}],"wp:attachment":[{"href":"https:\/\/manitimes.com\/wp-json\/wp\/v2\/media?parent=46163"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/manitimes.com\/wp-json\/wp\/v2\/categories?post=46163"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/manitimes.com\/wp-json\/wp\/v2\/tags?post=46163"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}