Bitcoin Volatility Mirrors Stock Trends, while Dogecoin Receives ETP Support, According to 21Shares Executive
In spite of the recent fluctuations in the market, 21Shares President Duncan Moir asserts that cryptocurrency assets, such as Bitcoin and Dogecoin, remain crucial for long-term diversification and are increasingly recognized as valid components of investment portfolios.
During a discussion on CNBC Monday morning, Moir elaborated on the macroeconomic factors influencing Bitcoin (BTC) and the firm’s introduction of a Dogecoin (DOGE) exchange-traded product in Europe.
Moir mentioned that the recent volatility in cryptocurrency has been less severe than many perceive, considering the extent of macroeconomic disturbances affecting other sectors. He noted that the fluctuations in crypto are “simply aligning with broader asset movements.”
He highlighted that Bitcoin’s long-term volatility has been diminishing, particularly as more institutional investors enter the market. In fact, he remarked that we are now at a stage where “Bitcoin’s volatility is comparable to that of equities.”
While some critics contend that Bitcoin’s response during inflationary periods challenges its status as a hedge, Moir maintains a contrary view.
“The argument for Bitcoin as an inflation hedge is still very much valid,” he stated. “With its fixed supply, we expect Bitcoin to maintain its reputation as a store of value for new market entrants.”
Timing of the Dogecoin ETP
Moir also discussed the recent introduction of a Dogecoin ETP by 21Shares in Europe, a move that attracted skepticism due to the meme coin’s historical volatility and unusual origins. He justified the decision as both well-timed and strategic.
“Dogecoin possesses particularly intriguing characteristics,” he noted. “Originally a playful social token with an ideal product-market fit, it is now evolving into a global payment currency. We are witnessing genuine use cases emerging from major corporations.”
He emphasized that the ETP, designed for investors seeking to hold Dogecoin long-term rather than engaging in short-term speculation, aims to make crypto investments accessible through a traditional financial framework.
“Whether the market is rising or falling, it didn’t really concern us,” he stated. “Our goal is to simplify investing in crypto, making it as straightforward as purchasing stocks.”
Moir underscored that 21Shares’ Dogecoin product emerges from a unique, officially sanctioned partnership with the Dogecoin community, indicating a growing institutional interest in the sixth-largest cryptocurrency by market capitalization.
“We are genuinely enthusiastic about this partnership because it is highly distinctive,” he remarked. “Such officially endorsed and exclusive collaborations are quite rare.”