The first-ever exchange-traded product integrating Bitcoin and gold was unveiled in Europe to counter inflation and boost returns, according to a report by Bloomberg on Wednesday.
The novel ETP seeks to bring together the benefits of the old and new worlds of finance by investing in the portfolio hedging power of gold and strong returns of the most well-known crypto token.
The physically-backed index product is referred to as 21Shares ByteTree BOLD ETP (ticker BOLD) through Swiss crypto ETP provider 21SHARES and UK alternative investment provider ByteTree Asset Management.
Charlie Erith, CEO of ByteTree Asset Management, stated that gold has historically provided portfolio protection in inflationary environments, while Bitcoin is the digital match of gold with growing adoption by investors as a core store of wealth.
Gold was given a higher weight of 81.5% at the launch, as Bitcoin was allocated a weight of 18.5%. The ETP will work by rebalancing both exposures every month in inverse proportion to their risks. BTCUSD up +2.51%, GLD up +0.045%