A new investment product that brings cryptocurrencies and traditional safe havens together under the same roof began trading in the London markets as of January 13. The Bitcoin and Gold ETF issued by 21Shares aims to offer investors similar return potential to Bitcoin, with a more balanced volatility profile. Listed on the London Stock Exchange, the product is the first in the UK to include both Bitcoin and gold in a single exchange-traded vehicle. The launch is seen as a tangible reflection of the rapidly increasing institutional demand following the lifting of restrictions on cryptocurrency-related exchange products in the UK.
First on the London Stock Exchange: Bitcoin and Gold in One Portfolio
The ETF, which started trading with the code BOLD, provides investors with intraday trading opportunities under the umbrella of the London Stock Exchange. The structure of the ETF targets investors who want to go beyond classical stock and bond investments by combining two alternative assets with the highest liquidity in global markets in a single risk-weighted portfolio. The growth potential of Bitcoin and the role of gold as a long-term store of value constitute the fundamental investment thesis of the ETF.
Following the lifting of the ban on cryptocurrency-related exchange-traded products in the United Kingdom in October, interest in similar instruments traded on the London Stock Exchange increased noticeably. According to the data of the stock exchange, a transaction volume of 280 million dollars was reached in the first month after the ban. This figure lagged behind only Xetra and SIX Swiss Exchange in Europe, demonstrating that London is rapidly becoming a strengthening hub for regulated cryptocurrency-based products.
The listing of the new product in London increased British investors’ access to cryptocurrencies under regulatory assurance and contributed to the deepening of the market. For institutional investors, transparency, custody security and regulatory clarity are among the determining factors in choosing such products.
Risk Weighted Strategy
One of the striking aspects of BOLD is that it bases portfolio allocation on risk equality rather than capital equality. While Bitcoin and gold are held in institutional-grade custodians, the portfolio is rebalanced monthly. The aim is to smooth out fluctuations and increase long-term returns by taking profits from the stronger performing asset and adding to the relatively weaker asset.
The product was first offered to investors in Switzerland in April 2022 and soon began trading on leading European stock exchanges. The structure, which provides a return of 122.5 percent in sterling terms by the end of 2025, surpassed the individual performance of both Bitcoin and gold in the same period. This chart shows how a risk-balanced approach can make a difference in volatile market conditions.
The product, with a total expense ratio of 0.65 percent, appeals to both those who want to take short-term positions and those looking for long-term diversification, thanks to its intraday trading opportunity. It stands out as an alternative tool for investors looking for a more stable return profile without direct exposure to Bitcoin.
