Crypto asset manager Bitwise has unveiled a new exchange-traded product (ETP) that blends Bitcoin’s growth potential with gold’s defensive stability.
The Bitwise Diaman Bitcoin & Gold ETP (BTCG), launched on March 6, dynamically adjusts its allocations between Bitcoin and gold in response to market conditions, following the Diaman Bitcoin & Gold Index.
According to a March 6 press release, the ETP is designed to cater to investors seeking a balanced exposure to both assets, using a monthly rebalancing strategy based on ULCER indices, a measure of downside risk. The product is backed by physical Bitcoin and Pax Gold (PAXG), a gold-backed token issued by Paxos and linked to reserves stored in LBMA-accredited vaults. The assets are secured in cold storage by an institutional custodian.
Commenting on the launch, Bradley Duke, head of Bitwise Europe, emphasized the importance of offering crypto investors the same range of options available in traditional finance.
“As crypto rapidly enters the mainstream, it is essential that we offer investors the full gamut of options available in traditional markets, including sophisticated hedges such as the ones we have developed in cooperation with Diaman Partners,”
Duke stated.
BTCG has been issued in Germany and is now trading on Euronext Paris and Amsterdam, with a yearly expense ratio of 1.49%.
The launch follows Bitwise’s expansion into European markets after acquiring ETC Group, rebranding its ETP suite and introducing new products, including Bitwise Solana and Bitwise Aptos Staking ETPs.
The launch of BTCG follows another significant milestone for Bitwise. The asset management firm recently secured initial approval from the U.S. Securities and Exchange Commission (SEC) for its Bitcoin and Ethereum exchange-traded product (ETP). The SEC granted “accelerated approval” for Bitwise’s 19b-4 filing, marking a crucial step in the regulatory process. However, before trading can commence, the SEC must approve the firm’s S-1 registration, which is required for issuing new securities to the public.
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