The lower risk may also diminish risk since royalty companies have historically rewarded investors by increasing dividends at a faster pace than the broader equity market.įinancial advisors who are interested in learning more about gold and crypto can watch the webcast here on demand.Three of the largest asset managers are diversifying their funds to hold blockchain stocks, throwing more establishment financial might behind bitcoin’s technology.Ĭharles Schwab has begun purchasing shares of Riot Blockchain, joining Fidelity and Vanguard – already investors in Riot, HIVE Blockchain Technologies, Hut 8 and BC Group – in allocating mutual fund holdings to a cryptocurrency company, according to financial filings with the U.S.

GOAU includes a 30% tilt to royalty and streaming companies, which could help investors better-manage common risks associated with traditional producers like building and maintaining mines. Additionally, they generate some of the highest revenue per employee of all public companies while growing cash flows and dividends. These companies hold highly diversified portfolios of mines and other assets to mitigate concentration. Royalty companies are not responsible for costly infrastructure, so huge operating expenses can be avoided. Global believes royalty companies are a superior way to target the gold mining segment. GOAU is distinct for its emphasis on royalty companies,” Holmes said.Īmong gold plays, royalty companies may stand out. “Royalty companies fund exploration and production for miners in return for royalties on what it produces. Global GO GOLD and Precious Metal Miners Index uses quantitative analysis to pick stocks, with a particular focus on royalty companies. Global GO GOLD and Precious Metal Miners ETF (NYSEArca: GOAU), a smart beta offering that tracks a specialized or rules-based index to help home in on quality players in the gold mining space. The blockchain companies have enjoyed a surge in interest, with HIVE shares outperforming both Ethereum and Bitcoin last year.Īlong with direct gold exposure, investors can consider gold miners and sector-related ETFs like the U.S. The company provides shareholders with exposure to digital currency mining as well as a portfolio of crypto-coins. HIVE Blockchain Technologies was the first publicly listed blockchain infrastructure company. Looking ahead, as the Bitcoin market diminishes in supply with the next so-called halving coming up, McGlone believes that Bitcoin volatility could begin to match gold volatility.Īs an alternative way to gain exposure to the growth of cryptocurrencies, Darcy Daubaras, Chief Financial Officer, HIVE Blockchain Technologies, highlighted the blockchain technology, the backbone of cryptocurrencies.

Nevertheless, Mike McGlone, Senior Commodity Strategist, Bloomberg Intelligence, argued that Bitcoin appears on track to becoming a globally accepted decentralized reserve, store-of-value asset that is easily transportable and transactionable, has 24/7 price discovery, is relatively scarce, and is nobody’s liability or project. Gold has also been a long-term performer, generating positive returns on an average annual basis 80% of the past 15 years. For example, Bitcoin has exhibited a +/-13% 10-day standard deviation for one year ended 2020, compared to gold’s +/-3% 10-day standard deviation. Holmes highlighted the ongoing volatility in the crypto space, especially when compared to traditional safe havens like gold.

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