World’s First Hybrid BTC and Gold ETF was Launched in Switzerland

World’s First Hybrid BTC and Gold ETF was Launched in Switzerland
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BUSINESS

World’s First Hybrid BTC and Gold ETF was Launched in Switzerland

The world's first combination Bitcoin and Gold exchange-traded fund (ETF) was finally available in Switzerland.

04/29/2022

This week, the world’s first combination Bitcoin and Gold exchange-traded fund (ETF) was finally available in Switzerland. ETP provider 21Shares and cryptocurrency data supplier ByteTree Asset Management collaborated to create the product, Crypto News Australia reported.

The SIX Swiss Exchange will introduce the first ETF product combining gold and what is now known as digital gold bitcoin in a single fund. “We are making bitcoin an acceptable asset to possess and bringing gold into the twenty-first century,” said Charlie Morris, a chief investment officer of ByteTree Asset Management.

ByteTree and 21 Shares Make BOLD Move

The BOLD ETP from ByteTree Asset Management will track a unique benchmark index that includes bitcoin and gold and rebalances monthly based on the relative volatility of the two assets. Whichever of the two has been less volatile over the last 360 days will have more weight. The weighting will be 18.5 percent bitcoin and 81.5 percent gold from the start.

While gold ETPs and spot bitcoin ETPs are both widely available independently, at least in continental Europe, Morris claimed that ByteTree’s active rebalancing strategy had improved returns by seven to eight percentage points a year in backtesting, according to the report.

Morris added: “It struck me that bitcoin and gold were always counter-cyclical. It’s obvious to me that bitcoin has always been correlated to the stock market, or to risk assets in general.”

The investing strategy is “a new way to merging a high return digital asset with a traditional store of wealth, with a low connection to equities and bonds,” according to Charlie Erith, CEO of ByteTree Asset Management.

21 Shares has Form in ETF Space

After releasing a product in December 2021 that gave Australian investors access to the country’s first direct Bitcoin and Ethereum ETFs, 21Shares has been highly active in producing ETFs.

By Elah Mae Ariate Wozinga Staff

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