21Shares has partnered with ByteTree Asset Management to launch the world’s first combined bitcoin and gold exchange-traded product (ETP).
The 21Shares ByteTree BOLD ETP (BOLD) is listed on the SIX Swiss Exchange and will track a customised index comprising of bitcoin and gold.
BOLD has been developed with ByteTree, a UK specialist provider of alternative investment strategies.
The ETP’s objective is to deliver protection against inflation via optimised risk-adjusted exposure to bitcoin and gold with assets weighted in inverse proportion to their risk.
Rebalanced monthly, BOLD has a 18.5% to bitcoin and an 81.5% to gold at launch.
Bitcoin has often been labelled digital gold as the pair have many similarities including the finite amount of both, low correlation to equities, they are both seen as a hedge against inflation and as a store of value.
Commenting on the launch, Hany Rashwan, co-founder and CEO of 21Shares, said: “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.”
Charlie Erith, CEO at ByteTree, 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.
“In a time of rising structural inflation and heightened geopolitical risk, we believe this can act as an important risk and return diversifier in a balanced portfolio.”
Earlier this month, the crypto ETP issuer launched a sandbox ETP, the 21Shares The Sandbox ETP (SAND) that offers exposure to the metaverse.