Bitwise Asset Management, a leading U.S.-based investment firm, has launched a new exchange-traded product (ETP) that combines the performance of bitcoin and gold. The Bitwise Diaman Bitcoin & Gold ETP (BTCG), which began trading on Euronext Paris and Amsterdam on Thursday, is designed to offer investors a unique opportunity to gain exposure to both the digital and traditional gold markets.
The BTCG ETP tracks the Diaman Bitcoin and Gold Index, which dynamically reallocates value between bitcoin (BTC) and gold based on their risk-adjusted performance. The strategy aims to take advantage of market cycles by adjusting the allocation of the portfolio in response to the shifting trends in the financial markets. Specifically, the index seeks to capture the cyclical trends between “risk-on” and “risk-off” behaviors, wherein bitcoin and gold often respond differently to various economic conditions.
Bitcoin, often dubbed “digital gold” for its similarities to the yellow metal, behaves differently in financial markets. While both assets are considered hedges against inflation due to their fixed supply, bitcoin is more closely correlated with risk assets, particularly technology stocks, and can experience higher volatility. In contrast, gold tends to act as a safe haven during times of economic uncertainty.
For example, in February 2025, gold prices reached record highs amid growing concerns over U.S. President Trump’s tariff plans, which sent shockwaves through global financial markets. During the same period, bitcoin’s value fell nearly 17%, highlighting the distinct performance dynamics of the two assets in times of market volatility.
The Bitwise Diaman Bitcoin & Gold ETP is designed to take advantage of these fluctuations by adjusting its exposure based on the relative performance of both assets. As a result, investors can benefit from the cyclical nature of these markets, optimizing returns while potentially minimizing risk. The portfolio is rebalanced regularly, providing active management in response to changing market conditions.
Bradley Duke, Managing Director and Head of Bitwise Europe, expressed excitement about the launch, saying, “We are thrilled to introduce this innovative product to the European markets. As cryptocurrency continues to gain mainstream acceptance, it is vital that we offer investors comprehensive options, including sophisticated hedging strategies that combine the benefits of both digital and traditional assets.”
The BTCG ETP offers a cost-effective way to gain exposure to both bitcoin and gold, with a total expense ratio (TER) of 1.49%. It joins Bitwise’s growing portfolio of investment products following the firm’s European debut in August 2024, after acquiring ETC Group. Bitwise has since launched additional products, including an Aptos staking ETP in November 2024.
The launch of BTCG comes three years after the introduction of the 21Shares ByteTree BOLD ETP, which was the world’s first wrapped strategy combining exposure to both precious metals and digital assets. With BTCG, Bitwise aims to build on this trend by providing investors with an easy-to-use, diversified product that reflects the evolving landscape of global investment strategies.
By offering a unique blend of bitcoin and gold, the Bitwise Diaman Bitcoin & Gold ETP provides investors with a novel approach to diversification in both digital and traditional markets, reflecting the growing convergence of these two asset classes in today’s financial environment.
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