Cryptocurrency financial services platform Matrixport released a report today highlighting the clear link between gold and Bitcoin (BTC) as a store of value, showing that the increasing popularity of the largest cryptocurrency is due to its recognition as a digital store of value.
Spot Bitcoin ETF Emphasis in the Report
In its latest report, Matrixport points out that Bitcoin’s market value of $540 billion represents 10.8% of the market value of physical gold. The report also adds that gold exchange-traded funds (ETFs) have a value of $200 billion.
According to the report, the approval of one of the many spot Bitcoin ETFs awaiting approval in the United States from the Securities and Exchange Commission (SEC) could trigger a major rally in the largest cryptocurrency and potentially result in a $20-30 billion influx into the Bitcoin market.
Meanwhile, the SEC continues to delay its decision on approving a spot Bitcoin ETF. The US federal regulator postponed its decision on all new applications until October and recently delayed its decision again in September. Despite these constant delays, the crypto world is still hopeful that the approval of a spot Bitcoin ETF by the SEC will trigger mainstream money flow into the industry.
Bitcoin’s Biggest Advantage over Gold: No Seizure Risk
Matrixport’s report emphasizes that the ability to store private keys in memory eliminates the risk of third-party seizure, giving Bitcoin an additional advantage over gold.
Markus Thielen, the research director at Matrixport, noted in the report, “Even today, storing assets in the form of gold is not only outdated in the digital age, but it also comes with significant restrictions when crossing country borders. Bitcoin offers a solution to this dilemma by allowing value to move quickly and relatively inconspicuously across borders.”
Thielen also stated, “Therefore, considering the current state of technological advancements, Bitcoin’s primary roles will likely be as a store of value similar to gold and as a speculative financial asset.”
