World’s First ETP That Combines Bitcoin and Gold Is Launched

By Kevin • April 28, 2022 1:56 pm • Comments

It was just announced that the world’s first exchange traded product that gives investors access to both Bitcoin and gold has just been launched on SWISS SIX stock exchange.

This new ETP was created by 21Shares and the crypto data provider called Byte Tree Asset Management and presents a very interesting use case for investors as Bitcoin has had a reputation for being known as “digital gold”.

The value of the ETP is also dynamic as the weighing of gold and bitcoin within the ETP will be dependent upon the comparative volatility between the two asset classes.

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As of right now, the weighting currently is 18.5% Bitcoin and 81.5% gold which makes sense given that Bitcoin is still much more volatile than gold when measured on percentage changes.

This new product could become a top choice for investors who believe in the futures of both gold and bitcoin in the future.

CoinDesk reports:

“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 because 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.

The ticker for this new ETP for investors who are interested in it is BOLD on the stock exchange.

A significant amount of exchange volume and incoming capital to this product is expected as the SIX is regarded as Europe’s 3rd biggest stock exchange.

Charlie Erith, a chief investment officer of ByteTree Asset Management, has also shared the vision which is that it this will be a helpful tool for investors to diversify their portfolios and hedge themselves against inflation.

Market demand for this will likely continue to increase as recent events such as geopolitical conflicts will likely force investors to hard and real assets instead.

CryptoPotato.com reports:

Following the development, Hany Rashwan, 21Shares co-founder and CEO, commented,

“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.”

The new ETP is the 30th product by 21Shares. The popular crypto ETP issuer even ventured into the metaverse with 21Shares The Sandbox ETP (SAND) earlier this month.

Earlier, it revealed that the ETP is designed to provide investors a secure way to capitalize on the growth of the Ethereum-based decentralized virtual world – The Sandbox.

As reported before, 21Shares teamed up with ETF Securities to roll out the first two ETFs in Australia, tracking the price of Bitcoin and Ethereum. However, the launch has been delayed for now.

Bitcoin might be the first step, but the possibilities could be unlimited when other digital assets are also included in such exchange traded products.

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