21Shares and ByteTree Asset Management have established the world’s first combined bitcoin and gold exchange-traded vehicle (ETP). The 21Shares ByteTree BOLD ETP (BOLD) is an exchange-traded fund that will track a customized index that incorporates bitcoin and gold and is listed on the SIX Swiss Exchange.
ByteTree, a specialist creator of alternative investment approaches in the United Kingdom, collaborated on BOLD.
The ETP’s purpose is to guard against inflation by maximizing risk-adjusted exposure to bitcoin and gold, with assets weighted inversely in relation to risk.
At debut, BOLD had an 18.5 percent bitcoin to gold ratio and an 81.5 percent gold to bitcoin ratio, which is rebalanced weekly.
Because they have many qualities, including a finite quantity, a weak correlation to stocks, and the fact that they are both used as a hedge against inflation and a store of value, Bitcoin is often referred to as digital gold.
The launch, according to Hany Rashwan, co-founder and CEO of 21Shares: “This hybrid product combines the traditional value of gold with the promising return rates of bitcoin, which is considered by many as the new gold.”
ByteTree’s CEO, Charlie Erith, added: “Gold has historically delivered portfolio protection in inflationary environments while bitcoin is the digital equivalent of gold with growing adoption by investors as a distinct asset class and a core store of wealth.”
We feel that in a period of rising structural inflation and increased geopolitical risk, this can be a valuable risk and return diversifier in a well-balanced portfolio.
The 21Shares The Sandbox ETP (SAND), a sandbox ETP that gives exposure to the metaverse, was launched earlier this month by the crypto ETP issuer.