The recent ETP has outperformed both S&P 500 along with NASDAQ 100 in the back testing. However, the new ETP will allow the investors to go long on physical gold as well as Bitcoin in the single fund. On the other hand, the ETP which is cryptocurrency based are the much commonplace in the European markets. These have also struggled to gain some kind of the regulatory access in the U.S. Here, ByteTree Asset Management now has announced ETP also known as exchange-traded product which combines Bitcoin and gold in the single fund.
The First ETP Gold-Bitcoin
Here, new ETP or the exchange-traded product is now betting on gold and Bitcoin. Here, ByteTree Asset Management certainly will debut its Gold-Bitcoin ETP. Thereby letting the investors go long at physical as well as “digital” gold in the single fund.
The latest ETP will now be able to rebalance the entire allocations of gold & Bitcoin each month based on the 360-day of the historic volatility. It will result in less volatile asset such as gold, having some high number of weightings to assist in maximizing the risk-adjusted returns of product. The ETP would also possibly have the 70-90% weighting of the gold which is based on backtesting stretching. We are also now making Bitcoin to be the most acceptable asset that hold &that brings gold in the 21st century.
To attain the unique pairing, it had to split the custodianship that is in between Coinbase. This will also help to handle the Bitcoin that will take proper care of gold. As per Morris, BOLD is first ETP for having the two independent custodians. Because of the complexity for using the separate custodians, yearly fees for ETP sit with almost 1.49%. As compared, Physical Bitcoin and the ETP charges are about 0.75%, while biggest U.S. gold ETF now takes just 0.4% for their service.