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21Shares launches hybrid Bitcoin and gold ETP to enable inflation hedge

The Cointelegraph ​

Cryptocoins News / The Cointelegraph ​ 296 Views

21Shares, a major issuer of cryptocurrency exchange-traded products (ETP), is launching a new ETP tracking a mix of Bitcoin (BTC) and gold.

The Switzerland-based firm on Wednesday announced the launch of the 21Shares ByteTree BOLD ETP (BOLD), a new product aimed at providing inflation protection by tracking an index providing risk-adjusted exposure to both BTC and gold.

Listed on the SIX Swiss Exchange, the new hybrid ETP is subject to monthly rebalances, according to the inverse historic volatility of each asset. At launch, BOLD comprises 18.5% of BTC and 81.5% of gold.

The new ETP was developed in collaboration with the United Kingdom-based alternative investment provider, ByteTree Asset Management. The product is positioned as the world’s first combined BTC and gold ETP.

“Gold has historically delivered portfolio protection in inflationary environments while Bitcoin is the digital equivalent of gold,” ByteTree CEO Charlie Erith said, adding:

“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.”

21Shares co-founder and CEO Hany Rashwan pointed out that many people in the crypto community view BTC as a digital alternative to gold, stating:

“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 the new ETP, 21Shares has reached a major milestone as BOLD is the 30th digital asset ETP launched by the firm. Formerly known as Amun, 21Shares is one of the world’s largest crypto ETP providers, the world’s first multi-crypto ETP on the SIX Swiss Exchange in November 2018.

Earlier in April, 21Shares launched The Sandbox (SAND) ETP to offer crypto investors exposure to the metaverse. The new metaverse-focused ETP tracks the performance of SAND, the native token of community-driven gaming platform The Sandbox.

Related: Survey of financial advisers and Grayscale comments suggest strong support for spot crypto ETF

21Shares is also among the companies that are expected to launch Australia’s first Bitcoin and Ether (ETH) exchange-traded funds (ETF) soon. According to a recent update from Cboe Australia, the ETFs will not commence trading on Thursday as previously scheduled due to additional checks.


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