Bitwise Launches ETF Targeting Gold and Bitcoin Alternatives

Bitwise and Proficio Launch Currency Debasement ETF

Digital asset firm Bitwise and Proficio Capital Partners have introduced the Bitwise Proficio Currency Debasement ETF. This new fund offers investors a blended portfolio of gold, bitcoin, and other precious metals as an alternative to traditional government-issued currencies.

Market Context and Strategy

The ETF's launch responds to rising geopolitical tensions and increasing sovereign debt levels worldwide. Its strategy focuses on assets not tied to specific national monetary or fiscal policies. The fund aims to capitalize on investor interest in alternative stores of value, highlighted by gold's recent record-high prices.

Portfolio Allocation and Economic Outlook

The fund will allocate a minimum of 25% of its assets to gold, with additional exposure to silver, platinum, palladium, and bitcoin. Bob Haber, CIO of Proficio, stated this reflects a long-term secular shift, anticipating growing demand for "hard currencies" as an alternative to traditional government bonds and equities.

Summary and Future Trends

In summary, the new Bitwise ETF provides a diversified vehicle for investors seeking a hedge against currency devaluation. Its performance will serve as an indicator of market sentiment towards non-sovereign assets like precious metals and bitcoin amid global economic uncertainty.

FAQ

Q: What is the main objective of the Bitwise Proficio Currency Debasement ETF?
A: Its primary goal is to offer an investment alternative to traditional currencies by holding a portfolio of assets like gold, precious metals, and bitcoin.

Q: What is the minimum allocation to gold in this ETF?
A: The fund is mandated to maintain a minimum allocation of 25% of its total assets in gold.

Source: Investing.com