21Shares launches world’s first BTC and gold ETP

The core objective of the BTC and gold ETP is to deliver protection against inflation

Piles of bitcoin are stacked up on rows of gold bars                                 
Both gold and the digital gold, bitcoin, have been paired up in a new 21Shares’ exchange-traded product – Photo: Alamy

Switzerland-based issuer of crypto exchange-traded products (ETPs) 21Shares has announced the listing on the SIX Swiss Exchange of the 21Shares ByteTree BOLD ETP.

The ETP, said 21Shares in a statement, is the world’s first ETP that combines bitcoin (BTC) and gold. It has been developed in partnership with UK provider and alternative investment strategies manager ByteTree Asset Management.

The core investment objective of the ETP is to “deliver protection against inflation”, said 21Shares. It will track a new customised benchmark/index comprising of BTC and gold.

The weighting at launch is 18.5% BTC and 81.5% gold. The less volatile asset will be accorded the higher weighting as the index will be rebalanced monthly.

‘Best of the old and new financial worlds’

According to 21Shares, the BOLD ETP combines “the best of the old and new worlds of finance” as well as two inflation-resistant assets.

“Both are highly liquid assets deemed resistant to inflation and have delivered strong returns historically,” added 21Shares.

‘A unique approach’

Charlie Erith, CEO of ByteTree Asset Management, described the BOLD investment strategy as a “unique approach” to blending a high-return digital asset and a traditional store of value with a low correlation to equities and bonds.

“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,” added Erith. “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.”

Hany Rashwan, CEO and co-founder of 21Shares, said: “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.

“With BOLD, we enter completely new territory and once again demonstrate the pioneering spirit of 21Shares within the ever-evolving crypto space.”

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