With all of the volatility in the stock markets, it would be easy to forget about Bitcoin as it’s not the most volatile asset across the tech universe anymore (that crown goes to small caps and dare we mention SPACs). Even solid cloud companies like Shopify are down more YTD and on a 1-year basis than the highly debated yet leading cryptocurrency. We are using Shopify as an example because it’s a solid #2 for market share in e-commerce.
YTD: (53%) SHOP (6.8%) BTC
1-YEAR: (50.9%) SHOP (12.7%) BTC
It's true that BTC is down 50% from ATHs but long-term investors are essentially flat over a year's time frame while Shopify investors have lost two years of gains. Both have solid long-term stories and will continue to see gains yet it's Bitcoin's narrative around volatility -- and whether it's less safe than stocks -- that should be questioned. The I/O Fund has outperformed even crypto market returns on Bitcoin due to our active trading stance. We have bought Bitcoin during many crypto selloffs and trimmed when it appears to be topping out, as you can view in this chart here. We always have an eye on the crypto market and this selloff is no exception as both myself and Portfolio Manager, Knox Ridley, recently had media opportunities where we discussed why Bitcoin continues to have a leading allocation in our portfolio.
In this exciting media clip, Knox answers some very pointed questions by CoinDesk that they had not prepared him for – including how can the I/O Fund say it’s a store of value? – what proof do we have? Fair question and I’d say his answer settles the debate.
