Thursday, March 28, 2024
HomeBTCByteTree Asset Management joins hand with 21 shares to launch new Bitcoin-Gold...

ByteTree Asset Management joins hand with 21 shares to launch new Bitcoin-Gold ETP

ByteTree Asset Management has declared the launch of a new exchange-traded product that mixes gold and Bitcoin into a single fund.

Both Bitcoin and gold are the subject of a new exchange-traded product. ByteTree Asset Management is launching a new Gold-Bitcoin ETP on Wednesday, allowing investors to go long on both real and “digital” gold in one fund. The 21Shares ByteTree Bold Index ETP will trade under the ticker BOLD on the SIX Swiss Exchange.

Every month, the new ETP will rebalance its gold and Bitcoin holdings based on its 360-day historical volatility. As a result, gold, a less volatile asset, has a higher weighting in the product to assist enhance risk-adjusted returns. Based on backtesting dating back to 2016, the ETP will most likely have a 70-90 percent gold weighting. ByteTree CEO Charlie Morris stated, “We are making Bitcoin an acceptable asset to possess and bringing gold into the twenty-first century.”

ByteTree had to split custody between Coinbase, which will handle the Bitcoin, and JPMorgan, which will handle the gold, in order to achieve its unique pairing. BOLD, according to Morris, is the first ETP with two separate custodians. Annual expenses for the ETP are 1.49 percent because of the complexity of utilising various custodians. In instance, Fidelity’s Physical Bitcoin ETP charges 0.75 percent, while the largest gold ETF in the United States charges only 0.4 percent.

Backtesting demonstrates that the BOLD ETP would have outperformed both the S&P 500 and the NASDAQ 100 over the last seven years if it had been managed with ByteTree’s active rebalancing method. While the S&P 500 has returned 109 percent and the NASDAQ has returned 215 percent, BOLD has returned more than 500 percent.

While cryptocurrency-based exchange-traded products are prevalent in European markets, regulatory approval in the United States has been difficult to come by. The Securities and Exchange Commission has continued to deny applications for a real, spot-backed Bitcoin ETF, despite the ProShares Bitcoin Futures ETFs introduction last October.

Read more:

Bitcoin may be an alternative gold, says DBS CEO Piyush Gupta

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

twenty − 16 =

- Advertisment -

Most Popular