As inflation fears mount, and fiat currencies weaken, Bitwise Asset Management has launched a new investment vehicle to boost its resilience index. The launch of the Bitwise Bitcoin Gold Currency Debasement ETF indicates institutions are starting to see crypto as protection not speculation.
ETF of Bitwise Bitcoin Gold Currency Debasement
The Bitwise Proficio Currency Debasement ETF with ticker BPRO has officially launched by Bitwise on the New York Stock Exchange (NYSE). This actively managed fund, unlike traditional spot Bitcoin ETFs, combines a diversified blend of Bitcoin, gold, precious metals and mining equities.
The ETF aims to counteract the gradual decline in purchasing power of fiat currencies, which is becoming a greater concern due to ongoing inflation and monetary issues.
How the ETF Balances Bitcoin With Gold
The Bitwise Bitcoin Gold Currency Debasement ETF is characterized by flexibility. Portfolio managers may not have to focus on just one in an asset class. Instead, they can dynamically adjust allocations across crypto and commodity-linked assets.
This will highlight.
- A minimum 25% allocation to gold at all time.
- Bitcoin and mining stocks exposure.
- The fee structure is at 0.96%.
- Prioritizing capital preservation rather than return enhancement.
This design is appealing for wealth managers wanting Bitcoin exposure without full descent into crypto.
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Why Capital Preservation Is The New Crypto Narrative
For a long time, Bitcoin has been advertised as a hedge against the debasement of currency due to its fixed supply. Nonetheless, recent market trends have muddied that waters. While gold has rallied during times of political pressure and monetary uncertainty, bitcoin has failed to keep up.
According to investment analysts, Bitcoin’s plummet during times that would have seen a rally in store-of-value assets is making one think about the cryptocurrency’s efficacy as an inflation hedge in the short-term. Such a reality makes blended strategies, like that of ETF Bitwise, more appealing.
Institutional Investors Rethink Portfolio Protection
According to industry research referred by Proficio Capital Partners, gold is too underrepresented in today’s investment portfolios despite its role as a safe-haven. The Bitwise ETF seeks to pair the stability of Gold with the long-term growth of Bitcoin.
The fund is designed for defensive positioning, not for speculation, as uncertainty clouds the macroeconomic outlook.
