The world's first exchange-traded product (ETP) that combined exposure to bitcoin (BTC) and gold has been listed on the Swiss SIX stock exchange.
- The product was developed by ETP issuer 21Shares and crypto data provider ByteTree Asset Management.
- The ByteTree Asset Management BOLD ETP will track a customized benchmark index comprising bitcoin and gold, which rebalances on a monthly basis according to the comparative volatility of the two assets. Whichever has been less volatile over the past 360 days will be given the higher weighting.
- At launch the weighting will be 18.5% bitcoin and 81.5% gold.
- "Bond-to-equity ratio of 60:40 has lost its luster: BOLD is the new 60:40. Gold's volatility is now lower than Nasdaq, but the yellow metal has offered better returns than tech stocks, tech stocks are falling because of peak internet. So, bitcoin is likely to outperform Nasdaq in both bull and bear markets," said Charlie Morris, ByteTree's founder and chief investment officer.
- While crypto ETPs have become widespread in Europe with more than 70 now listed, BOLD appears to the be the first that combines bitcoin and gold exposure.
- Bitcoin has often been compared to gold becuase its perceived benefits in portfolios as a hedge against inflation. Investment products that combine the benefits of the two while offsetting some of their risks could therefore prove popular as inflation in the eurozone area hit 7.5% last month.
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