Bitcoin worries ‘Fading’ as Crypto goes mainstream, S&P says

Bitcoin has “many similarities” with gold, and consumer fears about stealing the cryptocurrency are fading, according to a new report by a unit of the bond rating company and investment index Standard & Poor’s.

“Bitcoin theft concerns were prevalent a few years ago,” said Jim Wiederhold, associate director of real goods and assets for S&P Dow Jones Indices, in excerpts of the report emailed by the company’s press representative at New York. “As Bitcoin becomes more mainstream, these concerns are fading, though the risks of technologies and exchange counterparts remain.”

S&P joins a growing list of Wall Street companies to weigh bitcoin after prices for the cryptocurrency increased fourfold in 2020, sparking renewed interest among large institutional investors including BlackRock, the world’s largest money manager.

Some highlights from the S&P report:

Bitcoin prices have a one-year volatility of 82%, multiples of the 15% seen in gold prices, and the 26% volatility shown by the S&P 500 Index of major US stocks, according to the report.

The report comes as S&P itself is angling to enter the crypto market. The company last month announced a partnership with data provider Lukka to launch crypto indexes in 2021.