First ever exchange traded product combined gold bitcoin ETP officially launched, listed on Swiss SIX stock exchange
first ever exchange traded product (ETP) that combined exposure to bitcoin
(BTC) and gold in a single fund has been officially launched in Europe and listed
on Swiss SIX stock exchange.
Swiss crypto ETP issuer 21Shares and UK alternative investment crypto data provider ByteTree Asset Management developed the physically backed index product. This product is known as the 21Shares ByteTree BOLD ETP (BOLD). As per theory, products offer long-term rewards and inflation protection. In Europe ETPs have become widespread as there are more than 70 are listed. Bold is the first to combine bitcoin with gold exposure. Bold is the first to combine bitcoin with gold exposure.
ByteTree Asset Management's BOLD exchange traded product tracks a benchmark index that includes bitcoin and gold. ETFs rebalance both exposures each month in inverse based to their risks and volatility of each asset. Over the past 360 days ETP which is less volatile will be given higher weighting. Gold, by comparison, is the less volatile of the two assets. During launch Bitcoin weighs 18.5% and gold weighs 81.5%. In continental Europe gold ETPs and spot bitcoin ETPs are both widely available independently. Based on backtesting, Charlie Morris, who is ByteTree's founder and chief investment officer claimed that ByteTree's active rebalancing strategy had increased returns by 7 to 8% per year.
To give best to the old and new world of finance this product was created. As per Charlie Morris, BOLD is the new 60:40. The volatility of gold has now fallen below Nasdaq, but the yellow metal has provided better returns than tech stocks, and tech stocks are falling due to peak internet. So, bitcoin is likely to outperform Nasdaq in both bull and bear markets,"
Towards end of 2021, launch of the first Bitcoin linked ETF in the US shows high excitement for Bitcoin linked ETPs. During that time, the ProShares Bitcoin Strategy ETF(BITO) was the second most heavily traded ETF. That time, US SEC has frequently rejected the idea of a physically backed Bitcoin ETF.
CBW - External Analyst