(Bloomberg) 21Shares ByteTree BOLD ETP or BOLD has launched in Europe and offers twin prospects of inflation protection of gold and high returns in Bitcoin.
The ETP claims to bring the old and new worlds of finance, by combining gold and Bitcoin, respectively.
The novel product, which is physically backed, was launched via the Swiss crypto ETP provider 21Shares and UK’s ByteTree Asset Management.
ByteTree Asset CEO Charlie Erith says gold has historically offered protection in a high inflation environment. He says that Bitcoin, on the other hand, is a digital equivalent of gold and is already experiencing exponential adoption as a distinct asset class and store of value.
Erith says that in the current environment of high inflation and geopolitical concerns, the new product can serve as a crucial risk and return diversifier for investors.
Gold has an 81.5% weighting in the new product, given that it is less volatile, while Bitcoin carries 18.5%. The ETP rebalances both exposures every month relative to the risk proportion.
XAUUSD is down -0.70%, BTCUSD is up +2.24%.
