In light of recent market fluctuations, the President of 21Shares, Duncan Moir, asserts that cryptocurrencies like Bitcoin and Dogecoin continue to provide significant long-term diversification and are increasingly viewed as integral parts of investment portfolios.
During a discussion on CNBC on Monday morning, Moir talked about the broader economic factors influencing Bitcoin (BTC) and the firm’s introduction of a Dogecoin (DOGE) exchange-traded product in Europe.
Moir observed that the volatility impacting the cryptocurrency sector has actually been less dramatic than some might assume, especially compared to significant macroeconomic disruptions affecting other markets. Instead, he noted, the volatility in cryptocurrency is “simply aligning with other asset classes.”
He highlighted that Bitcoin’s long-term volatility has been on a decline, particularly as more institutional investors engage with the asset. In fact, we are seeing Bitcoin’s volatility reaching levels comparable to that of equities, he mentioned.
While some critics suggest that Bitcoin’s performance during inflationary periods challenges its reputation as a hedge, Moir stands firm in his belief to the contrary.
“The argument for Bitcoin as an inflation hedge remains very strong,” he stated. “With its fixed supply, we anticipate that new investors will continue to view it as a reliable store of value.”
Timing of the Dogecoin ETP
Moir also spoke on the recent introduction of a Dogecoin ETP in Europe, a move that raised eyebrows given the meme coin’s historical volatility and unconventional inception. He defended this choice as both strategic and timely.
“Dogecoin possesses particularly fascinating attributes,” he explained. “Originally a light-hearted social token with perfect market fit, it’s now transitioning towards a currency for global payments. We’re witnessing substantial use cases by major corporations.”
He indicated that the ETP, designed to allow investors to engage with Dogecoin through a traditional finance framework, targets long-term holders rather than those looking for quick speculation.
“It didn’t matter if the market was trending up or down,” he said. “Our goal is to make crypto investment as straightforward as purchasing stock.”
Moir underscored that the Dogecoin product from 21Shares is a result of a rare, officially sanctioned alliance with the Dogecoin community, illustrating an increasing institutional interest in the sixth-largest cryptocurrency by market capitalization.
“We’re incredibly enthusiastic about this partnership because it’s exceptionally unique,” he noted. “Officially endorsed and exclusive arrangements like this are not something you see often.”