State Street Strategist: Bitcoin Rise Could Give Investors a False Sense of Security

George Milling-Stanley, chief gold strategist at State Street Global Advisors, warned that Bitcoin's rise is giving investors a false sense of security and that its investment does not provide the stability of gold. "Bitcoin, pure and simple, is a return play, and I think people are always chasing return plays," he said. Milling-Stanley made the above comments as his company's SPDR Gold Shares ETF (GLD) celebrated its 20th anniversary this week. It is the world's largest physically backed gold ETF and is up more than 30% in 2024. He said: "20 years ago, the price of gold was $450 per ounce, and the current price is five times that of the time. If the price continues to be five times, the price of gold should exceed $100,000 in 20 years." He believes that investors who value the security characteristics of gold should reconsider whether to invest heavily in Bitcoin and believe that the crypto market is trying to manipulate them. "That's why they (Bitcoin promoters) call it mining. There is no mining involved. This is a pure and simple computer operation, but they call it mining because they want Bitcoin to look like gold - maybe remove some of the halo of gold." However, he admitted that it is not clear how high gold can actually rise. "I don't know what will happen in the next 20 years, but it will be an interesting journey. I think gold will perform well." (CNBC)