- Bitwise’s BTCG dynamically adjusts between Bitcoin and gold based on market conditions, providing investors with both growth potential and stability.
- The launch of BTCG marks a major step in integrating crypto into mainstream financial markets, making Bitcoin more accessible to European investors.
After receiving approval from the SEC, Bitwise, as reported by CNF, has introduced a new ETF that holds Bitcoin. Bitwise, a leading cryptocurrency asset manager, has launched an innovative investment product that combines Bitcoin and gold into a single financial instrument.
The Bitwise Diaman Bitcoin & Gold ETP (BTCG) is now trading on Euronext Paris and Amsterdam, providing European investors with exposure to both assets through a dynamic allocation strategy. As highlighted by ETF Stream:
US-based crypto specialist Bitwise Asset Management has unveiled a bitcoin and gold exchange-traded product (ETP) in partnership with Diaman. The Bitwise Diaman Bitcoin & Gold ETP (BTCG) is listed on Euronext Paris and Euronext Amsterdam with a total expense ratio (TER) of 1.49%.
This marks a significant development in the investment landscape, offering a new way to balance the high-growth potential of Bitcoin with the stability of gold.
A Smarter Approach to Bitcoin and Gold Allocation
Unlike traditional investment products that maintain a fixed allocation, BTCG employs a risk-adjusted strategy that shifts between Bitcoin and gold based on market conditions. The ETP relies on the Ulcer Index, a metric that evaluates both price volatility and the depth of market declines.
When Bitcoin demonstrates strong risk-adjusted performance, the fund increases its Bitcoin holdings. In contrast, during periods of high volatility or market downturns, BTCG shifts more allocation toward gold. This approach aims to optimize returns while mitigating market risk.
Why Bitcoin and Gold Make a Strong Pair
Although Bitcoin is often referred to as “digital gold,” the two assets behave quite differently. Bitcoin correlates with risk assets like tech stocks, making it highly volatile, while gold has historically been a safe-haven asset, maintaining value during economic downturns.
BTCG offers several advantages, making it an attractive option for investors looking for a balanced approach between Bitcoin and gold. It provides simplified diversification, allowing exposure to both assets without the need for direct ownership.
A New Era for Crypto & Gold Investments
The launch of BTCG represents a significant evolution in investment strategies, merging two of the most talked-about assets into a single, intelligently managed product.
By dynamically adjusting between Bitcoin and gold, Bitwise has created an option that offers both growth potential and risk mitigation.
Currently, according to CoinMarketCap data, Bitcoin (BTC) is trading at $88,092, reflecting a 3.65% decrease in the past day and an 11.79% increase over the past week.
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