One of the largest American banks, BNY Mellon, admitted that investing in gold instead of Bitcoins was a mistake.
Based on the SEC report, the bank explained that the low efficiency of their ETF is primarily due to the lack of shares of companies that invested their funds and the main cryptocurrency on the market. BNY Mellon also mentioned a missed opportunity to acquire shares in MicroStrategy. The document noted that one of the difficulties in increasing the efficiency of the fund was also the gold mining firm Alamos Gold, as the shares suffered due to the low prices for the precious metal.
The bank's Opportunistic Small Cap grew 35% from autumn 2020 to February 2021, while its Russell 2000 index rose 41.7% over the same period.
At the same time, US ETFs have invested an average of over 0.57% of their capital in MicroStrategy. And the company itself managed to accumulate about 92,000 Bitcoins in its accounts and is unlikely to stop. Since the first investments in August 2020, the value of cryptocurrencies managed by MicroStrategy has risen by 120%, and the price of MSTR shares has soared by 385% from $130 to $650, trading at some point at a record level of $1,270.