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Gundlach: Bitcoin May Be ‘The Stimulus Asset’

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DoubleLine's Jeffrey GundlachBitcoin is attracting more fans as its price continues to set another record high.

Its latest high-profile promoter: Jeffrey Gundlach, CEO of DoubleLine, who just a month ago declared his neutrality about the cryptocurrency as well as gold.

In a tweet late Wednesday, followed by an appearance on CNBC Thursday, Gundlach changed his tune, preferring Bitcoin to gold as the “stimulus asset” to own amid the massive amount of cash that has injected into the financial system during the current coronavirus pandemic.

“I am a long term dollar bear and gold bull but have been neutral on both for over six months. Lots of liquid poured into a funnel creates a torrent. Bitcoin maybe The Stimulus Asset. Doesn’t look like gold is,” Gundlach tweeted.

Bitcoin is often referred to as digital gold. While its prices have surged to record highs, topping $50,000, gold prices have declined to just under $18,000 an ounce from over $20,000 last August.

First Bitcoin ETF Starts Trading; Yellen Repeats Her Caution

In other Bitcoin news, the first Bitcoin ETF debuted Thursday on the Toronto Stock Exchange,  attracting $165 million from investors, but it finished the session down almost 5% from its open, at $10.09. The Purpose Bitcoin ETF (BTCC) invests directly in Bitcoin. The Securities and Exchange Commission in the U.S. has so far rejected any Bitcoin ETF filings, though a new one was just filed days ago.

On CNBC Thursday, Treasury Secretary Janet Yellen repeated her concerns about Bitcoin, as a “highly speculative asset” that has also been highly volatile.

Asked about potential regulation for Bitcoin, Yellen said “it’s important” to ensure that Bitcoin “is not used as a vehicle for illicit transactions and that there’s investor protection … so regulating institutions that deal in Bitcoin, making sure that they adhere to their regulatory responsibilities … is certainly important.”

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