Bitwise debuts Bitcoin-gold ETP with dynamic allocation

Bitwise has launched a new exchange-traded product balancing Bitcoin’s growth potential with gold’s defensive characteristics.

Crypto asset manager Bitwise has launched a new ETP product that combines Bitcoin (BTC) and gold, dynamically adjusting allocations based on market conditions. In a March 6 press release, Bitwise said its new product offering dubbed the Bitwise Diaman Bitcoin & Gold ETP (BTCG) dynamically adjusts allocations based on market conditions, following the Diaman Bitcoin & Gold Index.

Bradley Duke, head of Bitwise Europe, commenting on the launch said that with the latest product offering, Bitwise’s customers now have the “full gamut of options available in traditional markets.”

“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.”

Bradley Duke

The ETP rebalances monthly using ULCER indices, a measure of downside risk. It is backed by physical Bitcoin and Pax Gold (PAXG), a token issued by Paxos, which is tied to gold stored in LBMA vaults. The assets are held in cold storage by an institutional custodian. BTCG is issued in Germany and begins trading on Euronext Paris and Amsterdam on March 6, offering investors a total expense ratio of 1.49% per year.

The launch comes as Bitwise expanded its presence in Europe following its acquisition of ETC Group, rebranding its ETP suite and launching new products such as the Bitwise Solana and Bitwise Aptos Staking ETPs.