Bitcoin and gold combined in an ETP

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21Shares is launching a new Bitcoin and Gold ETP.

21Shares, a Swiss-based issuer of crypto exchange-traded products (ETPs), combines the themes of inflation protection and yield enhancement with a new ETP.

The 21Shares ByteTree BOLD ETP combines the digital cryptocurrency Bitcoin with the classic gold asset class and aims to protect investors from inflation and enhance returns through sophisticated risk management. The ETP is launched with a weighting of 18.5% Bitcoin and 81.5% Gold.

BOLD was developed in partnership with ByteTree Asset Management, a UK consultancy specializing in alternative investment strategies. BOLD’s primary investment objective is to hedge against inflation through optimized risk-adjusted exposure to Bitcoin and gold, where assets are inversely weighted to their risk – the less volatile asset gets the heaviest weight. With regular adjustment, rebalancing aims to smooth out and improve combined returns over time.

The fund is designed as a new element of diversification within a balanced portfolio and aims to display a low correlation with traditional asset classes. The ETP tracks a new proprietary index that includes Bitcoin and Gold and rebalances the two assets monthly and according to their inverse historical volatility (360 days).

Unprecedented combination of two inflation-resistant assets

The 21Shares ByteTree BOLD ETP combines the “old” and the new digital financial world with the selection of two historically successful asset classes. As the oldest asset class, gold has always offered portfolio protection in inflationary phases. Considering Bitcoin is increasingly establishing itself as a store of wealth among investors, Bitcoin can be seen as the “digital equivalent of gold.” Both assets are therefore liquid real assets that are considered inflation resistant and have delivered strong returns since 2015. As expected, gold performs well in a risky environment, while Bitcoin performs impressively in a risky environment. a risky environment.

Hany Rashwan, CEO and Co-Founder of 21Shares, comments on the joint product launch: “We at 21Shares are thrilled to publicly announce the world’s first Bitcoin and Gold ETP. The hybrid product combines the traditional value of gold with the promising returns of the bitcoin cryptocurrency, considered by many to be the new gold. With BOLD, we are innovating and once again demonstrating the pioneering spirit of 21Shares in the ever-changing world of crypto.

Charlie Erith, CEO of ByteTree Asset Management: “The BOLD investment strategy is a unique approach that combines a high-yielding digital asset with a traditional store of value, while demonstrating low correlation to stocks and bonds. Gold has a history of providing portfolio protection during times of inflation. Bitcoin, on the other hand, is the digital equivalent of gold and is increasingly being embraced by investors as a distinct asset class and central store of value. In an era of rising structural inflation and heightened geopolitical risk, we believe BOLD can act as an important risk-reward diversifier in a balanced portfolio.

Commenting on the investment approach, Charlie Morris, CIO of ByteTree Asset Management: “Our primary investment objective is to enhance portfolio returns and reduce investor portfolio risk. By holding both assets in an ETP and rebalancing bitcoin and gold exposure monthly, we aim for a better risk-adjusted return than if the two assets were held separately. Inverse volatility aims to balance an appropriate allocation in the mix of high volatility and low volatility assets, especially in volatile markets.

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