Bloomberg Analysts: MVDA's Volatility Over the Past Decade Was Three Times That of the Nasdaq with Zero Returns; ETF Approval May Signal a Short-Term Top for the Crypto Market

TechFlow reports that on September 28, Bloomberg Intelligence Senior Commodities Strategist Mike McGlone (@mikemcglone11) noted that the Market Vector Digital Assets 100 Index (MVDA) has ceased outperforming the Nasdaq 100 Index (NDX) since the launch of Bitcoin futures in 2017. Despite volatility roughly three times that of the NDX, the index has delivered flat performance over the past decade, maintains a positive correlation with the NDX, and fails to provide meaningful portfolio diversification benefits. McGlone believes that the approval of U.S. spot Bitcoin ETFs and policy shifts ahead of Trump's 2024 election may have already marked a local peak for the crypto market, with a low probability of further improvement. Bitcoin constitutes approximately two-thirds of the MVDA's composition.