The product has been developed by ETP issuer 21Shares and cryptoasset data provider ByteTree Asset Management.
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.
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The product has been developed by ETP issuer 21Shares and cryptoasset data provider ByteTree Asset Management.
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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.
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At launch the weighting will be 18.5 % bitcoin and 81.5% gold.
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“Bond to equity ratio of 60:40 has lost its lustre: 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, CIO of ByteTree.
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While crypto ETPs have become widespread in Europe with over 70 now listed, BOLD appears to the be the first that combines bitcoin and gold exposure.
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Bitcoin has often been compared to gold due to its perceived benefits in portfolios as an inflationary hedge. Investment products that combine the benefits of the two while offsetting some of their risks could therefore prove popular as inflation in the Euro area hit 7.5% last month.
This article was originally published on coindesk.com
