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World's first dual Bitcoin-gold ETP will begin trading in Europe

Updated: Aug 31, 2024
Published: Apr 27, 2022
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ByteTree Asset Management has announced the launch of a new exchange-traded product (ETP) that combines gold and Bitcoin into a single fund.

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SIX has listed combined Bitcoin and Gold ETP

ByteTree Asset Management will launch a new Gold-Bitcoin ETP on Wednesday, allowing investors to invest in physical and "digital" gold in a single fund. The 21Shares ByteTree Bold Index ETP will trade under the ticker BOLD on the SIX Swiss Exchange. It will follow a customized benchmark index that includes Bitcoin and gold and will rebalance monthly based on the relative volatility of the two assets.

The BOLD ETP from ByteTree is the first to combine gold and Bitcoin into a single fund. At launch, the weighting will be 18.5 % bitcoin and 81.5 % gold, with the asset with the lower volatility over the last 360 days receiving the higher weighting. To achieve its one-of-a-kind pairing, ByteTree had to divide custody between Coinbase, which will handle the Bitcoin, and JPMorgan, which will handle the gold.

BOLD is the first ETP to have two independent custodians, but this comes at a cost: the ETP's annual fees are 1.49%, which is relatively high due to the complexity of using separate custodians.

Is this the ultimate inflation hedge?

Former BitMEX CEO Arthur Hayes recently predicted that combining gold and Bitcoin will be a wise investment in the coming years, predicting that a Bitcoin will be worth $1 million by the end of the decade and gold will be worth $ 20,000 as nations begin to invest their surplus into hard assets such as Bitcoin and Gold. It remains to be seen whether this will be the case, but the pairing of Bitcoin and Gold is not an unpopular viewpoint.

Ray Dalio, the founder of Bridgewater Associates, has previously urged investments in gold and Bitcoin as early as 2020. Nonetheless, many gold proponents do not feel Bitcoin is an effective inflation hedge. Many Bitcoin investors do not believe gold's performance is good enough to include in their portfolio; however, the recently launched ETP may encourage traditional investors to take some exposure.

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