Key Points
- Bitwise has introduced a new exchange-traded product (ETP) blending Bitcoin and gold.
- The ETP, called Bitwise Diaman Bitcoin & Gold ETP (BTCG), adjusts allocations based on market conditions.
Bitwise has unveiled a new ETP that merges the growth potential of Bitcoin (BTC) and the defensive attributes of gold.
Dynamic Allocation Based on Market Conditions
The new product, named the Bitwise Diaman Bitcoin & Gold ETP (BTCG), adjusts its allocations in response to market changes, following the Diaman Bitcoin & Gold Index.
Bradley Duke, the head of Bitwise Europe, stated that this latest product offering allows Bitwise’s clients to access the full range of options available in traditional markets.
Physical Bitcoin and Pax Gold Backing
The ETP is rebalanced monthly using ULCER indices to measure downside risk. It is supported by physical Bitcoin and Pax Gold (PAXG), a token issued by Paxos that is linked to gold stored in LBMA vaults. The assets are stored in cold storage by an institutional custodian. BTCG is issued in Germany and began trading on Euronext Paris and Amsterdam on March 6, with a total expense ratio of 1.49% per year for investors.
The introduction of this ETP comes as Bitwise expands its footprint in Europe. This follows the acquisition of ETC Group, rebranding its ETP suite, and launching new products such as the Bitwise Solana and Bitwise Aptos Staking ETPs.