Digital ETP issuer 21Shares AG has announced the listing of the 21Shares ByteTree BOLD ETP (BOLD) on the SIX Swiss Exchange, the world’s first ETP that combines bitcoin and gold.
BOLD has been developed in partnership with ByteTree Asset Management, a UK specialist provider and manager of alternative investment strategies. BOLD’s core investment objective is to deliver protection against inflation via optimised risk adjusted exposure to bitcoin and bold with assets weighted in inverse proportion to their risk.
The 21Shares ByteTree BOLD ETP will track a new customised benchmark/index comprising bitcoin and gold via monthly rebalancing. The weighting at launch is 18.5 per cent bitcoin and 81.5 per cent gold.
“At 21Shares, we are excited to introduce the public to the world’s first Bitcoin and Gold ETP. 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, says Hany Rashwan, CEO & co-founder at 21Shares. “With BOLD, we are entering completely new territory and again demonstrate the pioneering spirit of 21Shares within the ever-evolving crypto space.”
The firm writes that BOLD combines the best of the old and new worlds of finance. As the oldest asset class, gold has historically delivered portfolio protection in an inflationary environment and Bitcoin is regarded as the digital equivalent of gold, considering its growing adoption as a store of wealth. Both are highly liquid assets deemed resistant to inflation and have delivered strong returns historically.
“The BOLD investment strategy is a unique approach to blending a high return digital asset with a traditional store of value, with a low correlation to equities and bonds,” says Charlie Erith, CEO at ByteTree Asset Management. “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.”