World’s First Combined Gold and Bitcoin ETP Listed on SIX
The Swiss SIX stock market has listed the first ever exchange-traded product (ETP), which combined exposure to Bitcoin and gold.
ETP issuer 21Shares, and crypto asset data provider ByteTree Asset Management have developed the product.
The ByteTree Asset Management BOLD ETP tracks a custom benchmark index that includes bitcoin and gold. It rebalances each month according to the relative volatility of these assets. Higher weighting will be given to the one that has shown less volatility over the past 360-days.
At launch, the weighting will equal 18.5 % Bitcoin and 81.5% Gold.
The 60:40 bond to equity ratio has lost its luster: BOLD is now 60:40. Although gold’s volatility is lower than that of Nasdaq, the yellow metal has provided better returns than tech stock, and tech stocks are falling due to peak internet. ByteTree’s Charlie Morris, CIO, stated that bitcoin will likely outperform Nasdaq on both bull and bear market.”
While crypto ETPs have become widespread in Europe with over 70 now listed, BOLD appears to be the first that combines bitcoin and gold exposure.
Bitcoin has often been compared to gold due to its perceived benefits in portfolios as an inflationary hedge. Combining the best of both could be a popular investment product. However, it may not have all the risks. as inflation in the Euro area hit 7.5% last month.