ByteTree brings 1st-ever Bitcoin-Gold combined ETP; Is this the next way forward?

Sahana Kiran
Source – Unsplash

Bitcoin [BTC] is quite often likened to gold and is even touted as ‘digital gold.’ The characteristics that they share of limited supply, sound money, and others have aided in this comparison. Some even view BTC as an alternative or even replacement to gold on the store of value grounds. Now, however, mainstream firms seem to be paving the way for the collaboration between gold and digital gold. ByteTree Asset Management was taking the lead on this one with the launch of the world’s first Bitcoin-Gold ETP.

ByteTree reportedly partnered with 21Shares, a crypto exchange-traded product platform for the launch of this product. The Bitcoin-Gold ETP is called BOLD ETP [BOLD] and has already been listed on the SIX Swiss Exchange.

Both BTC and gold have proved to be safe-haven assets during times of distress. Therefore, keeping in mind the surging structural inflation rate along with the geopolitical issues, BOLD could play the role of “risk and return diversified in a balanced portfolio.” The CEO of ByteTree, Charlie Erith added,

“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.”

Volatility puts Bitcoin in the backseat

The volatility of Bitcoin has been a concern to many. However, that doesn’t seem to be stopping them from embracing the king coin. As a result, BOLD would entail a total of 18.5 percent of Bitcoin and 81.5 percent gold during this launch. This, however, would be rebalanced every month.

Hany Rashwan, the co-founder and CEO of 21Shares also addressed this one of a kind collaboration and said,

“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.”

Additionally, as BTC sinks below $40k, the latest update got the community celebrating.