Investors looking for protection against inflation have traditionally turned to gold, while those seeking explosive growth have increasingly embraced Bitcoin. But what if you could combine both assets in a way that has historically outperformed owning either one individually?
That’s the idea behind BOLD, an investment strategy developed by ByteTree and available through the 21Shares BOLD exchange-traded product (ETP). Rather than simply splitting money between gold and Bitcoin, BOLD uses a risk-adjusted allocation and monthly rebalancing process designed to capture the strengths of both assets while reducing their weaknesses.
The strategy combines what ByteTree describes as the world’s two most liquid alternative assets. Gold provides stability and has a long history as a store of value, while Bitcoin offers growth potential driven by its fixed supply and increasing institutional adoption.
BOLD allocates more capital to the less volatile asset and recalculates its weightings each month based on the previous 360 days of price volatility. As a result, gold typically receives the larger allocation, while Bitcoin provides additional upside potential.
The key feature is the monthly rebalancing process. When one asset outperforms, a portion of that position is sold and the proceeds are invested into the weaker-performing asset. This disciplined “buy low, sell high” approach has, according to ByteTree, added between 5% and 7% per year in excess returns compared with simply buying and holding Bitcoin and gold separately.
The strategy also seeks to smooth out Bitcoin’s notorious volatility. Because gold and Bitcoin often react differently to changing economic conditions, combining them can reduce portfolio swings while still maintaining exposure to both assets.
According to Charlie Morris, CEO of ByteTree, the BOLD strategy is designed to help investors benefit from monetary inflation while achieving “enhanced returns for reduced risk.”
For investors who believe in both digital and hard assets, BOLD offers a structured way to gain exposure to gold and Bitcoin in a single investment, and potentially outperform either asset on its own.
You can currently buy the BOLD 21shares Bitcoin Gold ETP by ByteTree through Freetrade, interactive investor, Moneyfarm or Saxo.
Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape.
Having worked as a broker at Investors Intelligence and a multi-asset derivatives broker at MF Global (Man Financial), Richard has acquired substantial experience in the industry. His career began as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson), following internships on the NYMEX oil trading floor in New York and London IPE in 2001 and 2000.
Richard’s contributions and expertise have been recognized by respected publications such as The Sunday Times, BusinessInsider, Yahoo Finance, BusinessNews.org.uk, Master Investor, Wealth Briefing, iNews, and The FT, among many others.
Under Richard’s leadership, the Good Money Guide has evolved into a valuable destination for comprehensive information and expert guidance, specialising in trading, investment, and currency exchange. His commitment to delivering high-quality insights has solidified the Good Money Guide’s standing as a well-respected resource for both customers and industry colleagues.
