• Sat. May 21st, 2022

Digital asset store launches bitcoin and gold ETP

ByHazel R. Lang

Apr 27, 2022

A small company formed by former fund managers Coupland Cardiff and HSBC Global Asset Management has launched an exchange-traded product focused on opportunities in both bitcoin and gold.

ByteTree Asset Management was established in 2020 and is led by Charlie Erith, who is managing director and senior portfolio manager, and chief investment officer Charlie Morris, who was previously head of absolute return at HSBC GAM.

ByteTree AM has teamed up with Zug-based crypto specialist 21Shares to launch a fund on the SIX Swiss Exchange, which will give European investors access to a product that combines both bitcoin and gold.

Commenting on the launch, Erith said the 21Shares ByteTree Bold ETP will provide unique access to investors looking to defend against an inflationary environment.

The ByteTree Bold ETP is designed to track an index that monthly rebalances bitcoin and gold in inverse proportion to their risk, and its launch weighting is 18.5% bitcoin and 81.5% gold. respectively.

The strategy is designed to systematically favor the least risky and least volatile asset, automatically assigning it the highest weighting.

Talk to Citywire SelectorMorris of ByteTree AM said his company owns the intellectual property for the new product, while Swiss crypto ETP issuer 21Shares is the platform that pioneered the idea.

He added that the product is designed to counter the inherent belief that cryptocurrencies are more volatile than the broader market, notably the Nasdaq.

Morris said: “Our primary investment objective is to enhance portfolio returns and reduce an investor’s portfolio risk. By holding both assets in an ETP and rebalancing bitcoin and gold exposure monthly, we aim for higher risk-adjusted returns compared to the two assets held separately.

“Inverse volatility aims to balance an appropriate allocation when combining high and low volatility assets, especially in fluctuating markets.”

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