21shares Launches BOLD, the World’s First Bitcoin and Gold ETP
- Management , Bitcoins
- 27.04.2022 08:45 am
- The 21Shares ByteTree BOLD ETP is listed on the SIX Swiss Exchange and offered by 21Shares and ByteTree
- A physically backed ETP which rebalances Bitcoin and Gold monthly in inverse proportion to their risk
- BOLD is designed as a core component within a balanced portfolio, aiming to deliver uncorrelated long-term returns and wealth protection in an inflationary environment
21Shares AG (“21Shares”), a Swiss-based issuer of crypto Exchange Traded Products (ETPs), today announces the listing of the 21Shares ByteTree BOLD ETP on the SIX Swiss Exchange, the world’s first ETP that combines Bitcoin and Gold.
The ByteTree BOLD index product has been developed in partnership with ByteTree Asset Management, a UK specialist provider and manager of alternative investment stategies . BOLD’s core investment objective is to deliver protection against inflation via optimized risk adjusted exposure to Bitcoin and Gold with assets weighted in inverse proportion to their risk. It is designed to be a new diversifier within a balanced portfolio, offering a low correlation to traditional asset classes.
It will track a new customised benchmark/ index comprising Bitcoin and Gold via monthly rebalancing.. The weighting at launch is 18.5% Bitcoin and 81.5% Gold. BOLD aims to deliver protection against inflation, giving optimal risk-adjusted exposure to Bitcoin and Gold. It seeks to track an index comprising Bitcoin and Gold, which rebalances monthly according to the inverse historic volatility (360-day) of each asset. The less volatile asset will be accorded the higher weighting. By automatically adjusting weightings the rebalancing aims to smooth and enhance combined returns over time - the strategy continually favours the less risky asset, as measured by historic volatility. Gold has historically performed well in “risk-off” economic environments, while Bitcoin has performed well in “risk-on” economic environments.
Combination of two inflation-resistant assets
The 21Shares ByteTree BOLD ETP combines the best of the old and new worlds of finance. As the oldest asset class, Gold has historically delivered portfolio protection in inflationary environments. Bitcoin is the digital equivalent of Gold, with a growing adoption as a store of wealth. Both are liquid “hard assets” deemed resistant to inflation, and have delivered strong returns since 2015.
Commenting on the joint product launch, Hany Rashwan, CEO and co-founder of 21Shares, said: “At 21Shares, 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.
Commenting on the launch, Charlie Erith, CEO of ByteTree Asset Management, said: “The BOLD investment strategy is a unique approach to blending a high return digital asset with 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. 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.”
Commenting on the investment approach, Charlie Morris, CIO of ByteTree Asset Management, said: “Our core investment objective is to improve portfolio returns and reduce an investor’s portfolio risk. By holding both assets in an ETP and rebalancing Bitcoin and Gold exposure monthly, we are targeting superior risk-adjusted returns compared to both assets held separately. Inverse volatility aims to balance an appropriate allocation when blending high and low volatility assets particularly in fluctuating markets.”