Bitwise has announced the listing of the Bitwise Diaman Bitcoin & Gold ETP (ticker: BTCG; ISIN: DE000A4AKW34) on Deutsche Börse Xetra.
The ETP initially listed on Euronext Paris and Amsterdam and is issued and domiciled in Germany.
The firm writes that the ETP physically replicates the Diaman Bitcoin & Gold Index, which applies a dynamic, rules-based allocation between bitcoin and gold. The index methodology adjusts the relative weight of each asset based on predefined risk indicators, with the objective of reflecting changing market conditions over time.
The approach is designed to provide exposure to assets with different characteristics within a single exchange-traded structure, allowing investors to gain exposure to the characteristics of both bitcoin and gold.
Bradley Duke, Managing Director and Head of Europe at Bitwise, says: “At Bitwise, we are delighted to be able to list Bitwise Diaman Bitcoin & Gold ETP (“BTCG”) on Xetra, bringing such an innovative product to the largest European exchange for crypto ETPs. We are very proud of the work we did with Diaman Partners in bringing BTCG to investors, offering exposure to bitcoin and Gold, two assets with historically different correlation characteristics.”
The ETP rebalances bitcoin and gold allocations monthly based on the Diaman Bitcoin & Gold index methodology that uses ULCER indices, a volatility measure originally developed in the late 1980s, to assess downside risk and inform allocation decisions.
The ETP is fully backed by physical Bitcoin and by Pax Gold (PAXG), a token linked to physical gold held in LBMA-accredited vaults in London. The underlying assets are held with an institutional custodian using offline (cold-storage) custody arrangements.
Daniele Bernardi, CEO of Diaman Partners, says: “The Bitcoin & Gold Index has been designed to provide investors with dynamic exposure to two scarce, complementary assets, capable of contributing to portfolio diversification: bitcoin and gold. The listing on Xetra expands the range of trading venues on which BTCG ETP is available.”
Gold and bitcoin in a changing macro environment
The firm writes that gold and bitcoin have historically exhibited different behaviours across market environments. Gold has generally shown lower volatility relative to many risk assets during periods of market stress, while bitcoin has tended to display higher volatility and greater sensitivity to changes in investor risk appetite. As a result, the two assets may respond differently to macroeconomic developments and market cycles.
Recent economic, monetary, and geopolitical developments have renewed interest in assets often perceived as stores of value. Gold has traditionally fulfilled this role, supported by its physical scarcity and long-standing role in financial markets. Bitcoin, by contrast, has emerged as a digital asset with distinct structural characteristics, including a defined supply framework and the ability to be transferred without reliance on centralised intermediaries.
