Bitwise today (6 March) unveiled its latest ETP launch with the listing of the Bitwise Diaman Bitcoin & Gold ETP, which allows investors to benefit simultaneously from the potential of Bitcoin as well as the time-tested defensive characteristics of gold.
The ETP physically replicates the Diaman Bitcoin & Gold Index, which dynamically reallocates value between Bitcoin and gold, increasing Bitcoin exposure when its risk-adjusted performance improves, and shifting towards gold during Bitcoin downturns.
The strategy seeks to take advantage of cyclical trends and relative short-term price dislocations, acting as an efficient contributor to a long-term diversified portfolio for institutional and private investors.
Bradley Duke, managing director, head of Bitwise Europe, said: “I am excited to see the launch of yet another state-of-the-art product in our European 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.
"We’re thrilled to join forces with such an ambitious industry player with the backing of one of the continent’s foremost asset managers, Azimut.”
BTCG is designed for investors looking for a “store of value” strategy to minimize losses in crypto bear markets, while capitalizing on Bitcoin’s potential during upturns. The ETP rebalances Bitcoin and gold once a month based on ULCER indices, a volatility gauge developed in the late 1980s that measures the downside risk of a given asset.
Back-testing shows a clear outperformance of ULCER indices over more static allocation methods, demonstrating the added value of the product. BTCG is fully backed by physical Bitcoin and by Pax Gold (PAXG), a digital token tied to physical gold stored in LBMA vaults in London.
Both assets backing the ETP are held securely in cold-storage custody by an institutional custodian, meaning they are not connected to the internet. BTCG is issued and domiciled in Germany and started trading on Euronext Paris and Amsterdam on 6 March 2025.
Daniele Bernardi, CEO at Diaman Partners, said: “We are delighted to engage in such a promising partnership with Bitwise. BTCG is an excellent product for the broader investment community, designed to leverage Bitcoin’s strong fundamentals—historically the best-performing asset of the last decade, with minimal correlation to traditional markets—alongside gold’s role as a safe-haven asset in times of economic uncertainty and inflation.
"Many asset managers are still avoiding Bitcoin due to perceived risk, missing a key opportunity to enhance returns. The Bitwise Diaman Bitcoin & Gold ETP enables confident allocation to both physical bitcoin and digital gold, offering diversification and low correlation to strengthen portfolios in a risk-managed framework.”
