VanEck is a global investment manager with offices around the world. To help you find content that is suitable for your investment needs, please select your country and investor type.
Trends with Benefits is a podcast by VanEck with a forward-looking perspective. Host Ed Lopez interviews a guest each week to discover new ways of thinking about the markets, investing, work and life.
Find all relevant documents regarding VanEck’s ETNs such as KIDs, Prospectuses and Final Terms.
Find general legal policies and procedures of VanEck such as the Remuneration Policy or Complaints Procedure.
Through forward-looking, intelligently designed active and ETF solutions, we offer value-added exposures to emerging industries, asset classes and markets as well as differentiated approaches to traditional strategies.
Search the latest job roles and career opportunities at VanEck. Apply today to join our growing European team.
Find the VanEck contact details for all European countries. If you have questions about our range of ETFs and mutual funds, please let us know.
As Bitcoin breaks above $60K, it is worth noting that recent returns are coming from fundamentals and not multiple expansion.1 What we mean by that is that the ratio of network value (market cap) to on-chain volume (value transferred) is close to a 3-year low at 23x.2 We can think of this "NVT" (network value to transactions ratio) as similar to a "price to GMV" (gross merchandise value) ratio for Web 2.0 or fintech comps.
Source: Glassnode. Data as of 4/10/2021.
While it is possible that El Salvador's Bitcoin gambit or some other as-yet undisclosed institutional purchase led to chunky one-time transfers temporarily inflating the denominator of "NVT," our base case is that the momentum is sustainable. At least twenty-seven publicly-traded corporations now own 1.11% of all Bitcoin outstanding, or $10.6B at the current exchange rate. Add in exchange-traded Bitcoin funds and the number is 4.7%.3 This small but fast-growing percentage represents lumpy institutional demand. Subtract the coins which haven't moved in more than five years (another 22.5% of current supply) and the available liquidity at the current price shrinks even further.4
Meanwhile on the demand side, there are several developments. Media reports suggest Brazil may be next to declare Bitcoin legal tender as soon as this month.5 Credit card reward schemes should kick in with at least eight such cards already launched in developed markets.6 Crypto forensic specialists such as Chainalysis and Merkle Science are no doubt at work trying to identify and track the wallets associated with these accounts; for now, data is limited. Micropayments from Bitcoin gaming are also growing from a very low base: VanEck has made several venture investments in this space including Zebedee7 whose recent blog post "how to play games for Bitcoin" detailed six such options.8 Lastly, seasonals are highly supportive with the average 10-year return for Bitcoin in October and November at 33% and 47%, respectively.9
And yet, I believe the Bitcoin network is undervalued by recent historical standards, and the relevant equities even more so in my view. Digital asset enablers, as tracked by the MVIS Global Digital Assets Equity Index, now trade at an average PE of 40x, down from a recent peak of well over 100x.10 Their market cap now approaches that of gold miners, reflecting the high growth and emerging profitability in the sector.11
Source: MVIS, Bloomberg, VanEck. Data as of 30/9/2021.
Source: MVIS, Bloomberg, VanEck. Data as of 28/9/2021.
VanEck assumes no liability for the content of any linked third-party site, and/or content hosted on external sites.
MVIS Global Digital Assets Equity Index tracks the performance of companies that are participating in the digital assets economies.
NYSE Arca Gold Miners Index track the overall performance of companies involved in the gold mining industry.
1 Multiple expansion and contraction refers to the phenomenon by which stocks may rise or fall without changes in earnings expectations, due to changes in investor sentiment, interest rates, etc.
2 Source: Glassnode.
3 Sources: Public Companies with Bitcoin Holdings - CoinGecko; http://charts.woobull.com/bitcoin-etf-corporate-holdings/
4 Source: Glassnode.
5 https://coinquora.com/brazil-set-to-adopt-bitcoin-as-its-legal-tender/, https://www.pymnts.com/news/payment-methods/2021/in-brazil-bitcoin-acceptance-comes-with-more-regulation/
7 VanEck’s venture capital partner Cadenza owns less than 1% of Zebedee.
9 Source: Bloomberg.
10 Source: MVIS, Bloomberg, VanEck.
11 Source: MVIS, Bloomberg, VanEck.
For informational and advertising purposes only.
This information originates from VanEck (Europe) GmbH which has been appointed as distributor of VanEck products in Europe by the Management Company VanEck Asset Management B.V., incorporated under Dutch law and registered with the Dutch Authority for the Financial Markets (AFM). VanEck (Europe) GmbH with registered address at Kreuznacher Str. 30, 60486 Frankfurt, Germany, is a financial services provider regulated by the Federal Financial Supervisory Authority in Germany (BaFin). The information is intended only to provide general and preliminary information to investors and shall not be construed as investment, legal or tax advice. VanEck (Europe) GmbH and its associated and affiliated companies (together “VanEck”) assume no liability with regards to any investment, divestment or retention decision taken by the investor on the basis of this information. The views and opinions expressed are those of the author(s) but not necessarily those of VanEck. Opinions are current as of the publication date and are subject to change with market conditions. Certain statements contained herein may constitute projections, forecasts and other forward looking statements, which do not reflect actual results. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. All indices mentioned are measures of common market sectors and performance. It is not possible to invest directly in an index.
All performance information is historical and is no guarantee of future results. Investing is subject to risk, including the possible loss of principal. You must read the Prospectus and KIID before investing.
No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of VanEck.
© VanEck (Europe) GmbH