During a recent appearance on Schwab Network, VanEck CEO Jan van Eck advised investors to hold both Bitcoin and gold to maintain proper portfolio balance. He emphasized that the two assets share similarities, particularly their limited supply, making them effective stores of value. Van Eck, who was the first ETF sponsor to file for a Bitcoin ETF in 2017 when Bitcoin was priced at $3,000, described himself as “a crypto hippie” but stressed the importance of including both assets to navigate different market cycles.

However, van Eck expressed concerns about Bitcoin’s current high correlation with the Nasdaq index. He argued that investors do not need another risk-on asset simply for diversification purposes, noting that Bitcoin used to serve as a “wonderful” diversifier. He hopes that market cycles will shift and the correlation between Bitcoin and equities will decrease, restoring its value as a portfolio hedge.