The Swiss crypto-ETP issuer 21Shares combines Bitcoin and Gold in the world's first exchange-traded product and lists the BOLD ETP on SIX Swiss Exchange. It was developed in collaboration with ByteTree Asset Management and is designed to offer long-term returns in an inflationary environment.
The BOLD ETP is physically backed and weighs Bitcoin and Gold monthly in inverse proportion to their risk. The product is designed as a core component of a balanced portfolio and is offered by 21Shares and ByteTree.
World's first ETP combines bitcoin and gold
The central investment goal of BOLD (SIX Swiss Exchange, ISIN: CH1146882308, Ticker: BOLD SW) is, according to the issuer, the protection against inflation through an optimized, risk-adjusted investment in Bitcoin and gold. The ETP is intended to provide new diversification opportunities within a balanced portfolio and have a low correlation with traditional asset classes. The current weighting is 18.5% Bitcoin and 81.5% Gold.
"The 21Shares ByteTree BOLD ETP (BOLD SW) is designed as a protection against inflation and offers an optimized risk-adjusted investment in Bitcoin and gold. The product tracks an index which includes Bitcoin and gold and is rebalanced monthly according to the inverse of the historical volatility (360 days) of each asset." - 21Shares AG
Inflation protection and diversification
The 21Shares ByteTree BOLD ETP wants to combine the best of the old and new financial world. As the oldest asset class, gold has in the past offered portfolio security in inflationary environments. Bitcoin is considered the digital equivalent of gold. Both are liquid assets that are considered inflation-resistant and have achieved high returns since 2015.
BOLD brings together gold and bitcoin in a monthly rebalancing strategy. By automatically adjusting the weights, its rebalancing aims to smoothen and improve the combined returns over time. The strategy always favors the less risky asset, as measured by historical volatility. Gold performs well in a "risk-averse" economic environment, while Bitcoin performs well in a "risky" economic environment.
"We at 21Shares are pleased to offer the world's first Bitcoin and Gold ETP to the public. This hybrid product combines the traditional value of gold with the promising returns of Bitcoin, which is seen by many as the new gold." - Hany Rashwan, CEO and co-founder of 21Shares
The BOLD investment strategy is a unique approach to combine a high-yield digital asset with a traditional store of value, according to Charlie Erith, CEO of ByteTree Asset Management. He adds that the aim is to achieve minimal correlation with equities and bonds. The firm believes BOLD can act as an important risk and return diversifier in a balanced portfolio - at a time of rising structural inflation and heightened geopolitical risk.