21Shares and ByteTree launch a gold-cum-Bitcoin ETP
21Shares ByteTree BOLD ETP will be the first ETP (Exchange Traded Fund) launched in Europe that will deal in both Bitcoin and gold
By Shashank Bhardwaj
The 21Shares ByteTree BOLD ETP is a collective brainchild of 21Shares, the Switzerland-based ETP (Exchange Traded Fund) provider and asset management firm ByteTree. The ETP or exchange-traded fund combines Bitcoin and gold, and is the first of its kind to be launched in Europe.
Both the issuers–21Shares and ByteTree–believe that the ETP will be a great investment vehicle for asset protection, guaranteeing substantial returns during these inflationary times. The ETP has launched on the SIX Swiss Exchange. It rides on Bitcoin’s organic hedge against fiat inflation and gold as a millennium-old store of value and hedge against inflation. Bitcoin’s digital gold status among crypto enthusiasts, in a way, provides the ETP with a dual focus on assets having very similar features.
ByteTree’s CTO, Charlie Morris, said, “We are making bitcoin an acceptable asset to hold and bringing gold into the 21st century.” The ETP has been listed with a BOLD ticker and a German listing may follow soon.
The percentage combination of gold and Bitcoin will be heavily inclined towards gold. Gold will make up 81.5 percent of the composition and Bitcoin will make up the remaining 18.5 percent. The composition of the ETP will be adjusted every month depending on the relative volatility of Bitcoin and gold. If any of the two assets is less volatile than the other, investors will get more exposure to that asset.
The BOLD ETP Index is the 70th ETP approved so far in Europe as against the only Proshares ETF approved in the US. Interestingly, 21Shares had its application for a spot Bitcoin ETF rejected by the US SEC three weeks ago. The correlation between Bitcoin and gold is negative at -4 over the last 50 days and both the assets are moving in opposite directions.
Charlie explained further “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.”
Shashank is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash