Gold, the less volatile of the two assets, has been assigned a higher weighting of 81.5% at launch, while Bitcoin has an 18.5% weighting.
Many market participants are still wary of Bitcoin’s suitability as a potential hedge for inflation, especially in light of the cryptocurrency’s negatively trending correlation with gold.
A small open-ended unit trust called Incrementum Digital & Physical Gold Fund was incorporated in Liechtenstein in 2020 and allocates investments between cryptocurrencies and gold.
Meanwhile in the U.S., excitement around Bitcoin-linked ETPs peaked toward the end of 2021 with the launch of the first Bitcoin-linked ETF in the country — the ProShares Bitcoin Strategy ETF — which made its mark as the second-most heavily traded fund at the time.