Vinter, the leading crypto index provider, announces the launch of the BOLD1 index – providing investors with exposure to bitcoin and gold. The index will be underlying financial products as of today.
Inflation in Europe is at its highest level since the euro was introduced. Eurostat has estimated the year-on-year inflation rate for consumer prices in March to be 7.4%, far above the 2% target set by the European Central Bank. As a result, investors have started searching for havens from what could become the worst inflation in four decades.
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The Vinter Bytetree BOLD1 Inverse Volatility Index (“BOLD1”) is an index containing bitcoin and gold, weighted such that an equal amount of risk is invested into both assets. The more volatile bitcoin is (relative to gold), the lower the weight in bitcoin.
Jacob Lindberg, CEO and co-founder of Vinter, said: “Gold is a risk-off asset, whereas bitcoin is a risk-on asset. Thanks to their similarities and dissimilarities, combining the two assets in a portfolio makes sense. In times of inflation, hard assets and stores of value are usually smart investments.”
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Charlie Erith, CEO at ByteTree, added: “Gold has historically delivered portfolio protection in inflationary environments while bitcoin is the digital equivalent of gold with growing adoption by investors as a distinct asset class and a core store of wealth. In a time of rising structural inflation and heightened geopolitical risk, we believe this can act as an important risk and return diversifier in a balanced portfolio.”
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