Bitcoin Etp The Meta Economist

Dual Bitcoin-gold ETP

17 June 2022


The first world dual Bitcoin-gold ETP will begin trading in Europe, ByteTree Asset Management, will allow investors to invest in physical and "digital" gold in a single fund. The 21Shares ByteTree Bold Index ETP, will trade with the ticker BOLD on the SIX Swiss Exchange. A custom index that includes Bitcoin and gold will follow and rebalances monthly based on the relative volatility of the two assets.

The new ETP will rebalance its allocations of gold and Bitcoin every month based on its 360-day historic volatility. This results in the less volatile asset, gold, having a higher weighting to help maximize the product’s risk-adjusted returns. The ETP will likely have a 70-90% weighting of gold based on backtesting stretching back to 2016. “We are making Bitcoin an acceptable asset to hold and bringing gold into the 21st century,” said ByteTree CEO Charlie Morris. 

To achieve its unique pairing, ByteTree had to split custodianship between Coinbase, who will handle the Bitcoin, and JPMorgan, who will take care of the gold. According to Morris, BOLD is the first ETP to have two independent custodians. Due to the complexity of using separate custodians, annual fees for the ETP sit at 1.49%. In comparison, the Fidelity’s Physical Bitcoin ETP charges 0.75%, while the largest U.S. gold ETF takes only 0.4% for its service. 

This "new" "double-asset" of ByteTree ETP BOLD is the first to combine gold and $ BTC into one fund. At launch, the weighting will be 18.5% Bitcoin and 81.5% gold. BOLD is the first ETP to have two independent custodians, but this comes at a cost: ETP annual fees are 1.49%, which is high due to the complexity of using segregated funds.

This isn’t a financial advice.

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