21Shares, the world's largest issuer of cryptocurrency ETP, has partnered with ByteTree Asset Management to launch the world's first combined Bitcoin and gold exchange-traded product (ETP).
According to the latest information, the first stock market product that combines Gold and the leading cryptocurrency Bitcoin (BTC) in a single fund is launching in Europe today. So much so that ByteTree BOLD ETP (BOLD), the first ETP combined with 21Shares, Gold and Bitcoin, is listed on the SIX Swiss Exchange today. BOLD was developed together with ByteTree, a specialist provider of alternative investment strategies.
The purpose of the ETP is to hedge against inflation through optimized risk-adjusted exposure to Bitcoin and gold by weighting assets inversely to their risk.
Charlie Erith, CEO of ByteTree Asset Management, said in a statement;
“While gold has historically provided portfolio protection in inflationary environments, Bitcoin is the digital equivalent of gold with increased adoption by investors as a distinct asset class and a core store of wealth. In a time of rising structural inflation and heightened geopolitical risk, it has been recognized as an important risk and return diversifier in a balanced portfolio. We believe you can move."
As the less volatile of the two assets, Gold has a higher weight of 81.5% at launch, while Bitcoin has a weight of 18.5%. ETP, on the other hand, works by rebalancing both risks in inverse proportion to their risks each month to manage volatility and increase returns.
21Shares co-founder and CEO Hany Rashwan made some statements about the launch and said;
“This hybrid product combines the traditional value of gold with promising Bitcoin rates of return, which is considered by many to be the new gold.”
Also, crypto ETP publisher 21Shares launched a sandbox ETP earlier this month called The Sandbox ETP (SAND), which offers exposure.