Bitwise Asset Management has launched a new exchange-traded product (ETP) that combines the growth of bitcoin with the defensive stability of gold.
The Bitwise Diaman Bitcoin & Gold ETP (BTCG) started trading on Euronext Paris and Amsterdam on March 6, 2025. The product dynamically allocates between bitcoin and gold so investors get exposure to both assets while managing risk.
BTCG follows the Diaman Bitcoin & Gold Index which reallocated funds between bitcoin and gold based on market conditions.
When bitcoin’s risk-adjusted performance improves, the ETP increases its exposure to bitcoin. During downturns, it shifts more to gold which has historically been a safe haven in times of economic uncertainty.
This dynamic approach aims to capture bitcoin’s long-term potential while minimizing risk in volatile market conditions. The product is perfect for investors looking for a “store of value” strategy that protects them during bitcoin bear markets and allows them to benefit from the asset’s growth.
BTCG is a physically backed ETP, meaning it holds real bitcoin and Pax Gold (PAXG) – a digital asset tied to physical gold stored in London Bullion Market Association (LBMA) vaults.
The bitcoin is held in cold-storage custody, so it’s not connected to the internet. The product has a Total Expense Ratio (TER) of 1.49% per year and is domiciled in Germany.
The ETP is rebalanced once a month using ULCER indices—a measure of downside risk first developed in the 1980s. Backtesting has shown this strategy outperforms static allocation methods and helps investors achieve better returns while managing risk.
The launch of BTCG is a big milestone for Bitwise, which has been expanding in Europe. Bradley Duke, Managing Director and Head of Bitwise Europe, said:
“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.”
BTCG is a product of the partnership between Bitwise and Diaman Partners, a digital asset-focused UCITS fund manager backed by Azimut, a European asset manager.
Daniele Bernardi, CEO of Diaman Partners, said, “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.”
Bitcoin is called “digital gold”, but often shows extreme volatility. Gold, on the other hand, is a proven hedge against inflation and economic instability, and its price is more stable.
By combining these two assets in one investment vehicle, BTCG allows investors to benefit from their strengths while reducing exposure to wild market swings.
For example, when geopolitical tensions or economic policy worries arise, investors tend to flock to safe-haven assets like gold. Meanwhile, during bull cycles bitcoin has been one of the best-performing assets. BTCG’s dynamic rebalancing ensures investors are positioned for both.
With institutional interest in alternative safe-haven assets on the rise, BTCG enters the market at the right time. Bradley Duke said, “We’ve looked at the performance of this index versus the S&P 500, Nasdaq 100, and gold alone, and it has outperformed considerably.”
