The ETP issuer 21Shares and crypto data supplier ByteTree Asset Management collaborated on the product. Swiss SIX stock exchange provides combined exposure to Bitcoin (BTC) and gold with the ETP.
The ByteTree Asset Management BOLD ETP will monitor a tailored benchmark index that includes bitcoin and gold and rebalances monthly based on the two assets’ relative volatility. The option with the lowest fluctuation over the last 360 days will be given a better ranking. Initially, the weighting will be set at 18.5 percent for Bitcoin and 81.5 percent for Gold.
“The 60:40 bond-to-equity ratio has lost its allure: BOLD is the new 60:40.
Although gold’s volatility is currently lower than that of the Nasdaq, the yellow metal has provided superior returns to tech companies, which are declining due to the internet’s peak. In both bull and downturn markets, bitcoin is expected to beat Nasdaq “ByteTree’s founder and chief investment officer, Charlie Morris, stated.
Although there are currently more than 70 crypto ETPs listed in Europe, BOLD looks to be the first that combines bitcoin and gold exposure.
Bitcoin has been associated with gold because of its perceived value as an inflation hedge in portfolios. As the European Union’s inflation rate topped 7.5 percent last month, investment solutions that combine the benefits of the two while mitigating some of their dangers may become popular.
Photo by Jürg Kradolfer
