Debasement Drives BOLD
ByteTree BOLD Index Monthly Rebalancing Report;
The 21Shares Bitcoin Gold ETP (BOLD) invests in Bitcoin and Gold. BOLD combines the world’s two most liquid alternative assets on a risk-adjusted basis. Due to their naturally low correlation, the diversification benefits of holding both assets have been unusually high. Bitcoin prefers risk-on market conditions, while Gold prefers risk-off.
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BOLD Performance
In August, BOLD rose by 15.5%, while Bitcoin returned 25.4%, Gold 9.7%, and global equities 2.6%, in USD terms. August was a strong month for the debasement trade as the US Treasury intervened in the bond market.
Bitcoin, Gold, BOLD, and Equities in USD – August 2026
Over the past year, BOLD has returned 10.6%, Bitcoin -26.9%, Gold +28.7%, and equities +20.4%. BOLD has regained ground with equities, with good rallies in both Bitcoin and Gold in August. Gold remains in front.
Bitcoin, Gold, BOLD, and Global Equities in USD - Past Year
Over the past five years, BOLD has returned +158.1%, while Bitcoin has returned +67.0%, Gold +144.7%, and equities +70.1%. Bitcoin and Gold averaged 105.9%, yet BOLD returned 158.1%, adding 52.3% above the average of the individual assets. This is mainly driven by rebalancing transactions. Note how BOLD is now ahead of Gold, despite a weak Bitcoin over five years. Bitcoin is back in line with equities following the August rally.
Bitcoin, Gold, BOLD, and Global Equities in USD - Past Five Years
This point is best demonstrated by Bitcoin's high of $19,041 on 17th December 2017, which seemed extreme at the time. Since then, BOLD has returned +452.5%, while Bitcoin has returned +347.3%, Gold +253.2%, and equities +173.5%. The average return of Bitcoin and Gold was 300.3%, yet BOLD was +152.3% ahead. Over long-term timeframes, BOLD has been comfortably ahead of both Bitcoin and Gold. While Bitcoin and Gold have seen similar returns, BOLD has stayed ahead. Bitcoin is now back in front of Gold.
Bitcoin, Gold, BOLD, and Global Equities in USD - Since Bitcoin’s 2017 Price High
Monthly Rebalancing of the BOLD ETP
BOLD allocates to Bitcoin and Gold on a risk-adjusted basis using historical volatility calculated from daily price movements. The less volatile asset, which has lower daily price moves, gets a higher weight in the index at the end of the monthly rebalancing.
It is notable that Bitcoin’s 360-day volatility has been falling, while Gold’s has been rising. Note that Bitcoin’s short-term 180-day volatility has fallen in August. For Gold, the 180-day measure is still leading Gold’s higher volatility. The gap between the asset volatilities has never been narrower than it is today. Over 180 days, the asset volatilities are the same.
Bitcoin and Gold’s Past 360-day Volatility
Rather than investing the same amount of value in each asset, the BOLD strategy aims to hold equal amounts of “risk” in each asset and is hence “risk-weighted”. Over the past 360 days, Bitcoin and Gold's volatility was 35.5% and 26.8%, respectively. Gold’s volatility has increased significantly compared to recent years.
If Bitcoin and Gold had the same volatility, the weights would be 50/50. Indeed, if Gold’s volatility were ever higher than Bitcoin’s, then Bitcoin would have a larger allocation. Using this formula, the volatility measures resulted in new target weights of 43.0% for Bitcoin and 57.0% for Gold.
Asset allocation is an important feature. Over the long term, the aim is to equalise the risk in each asset. In 2017 and 2018, BOLD had relatively low exposure to Bitcoin because of its high volatility at the time, which helped it through the 2018 bear market. At other times, it has generally been in the 20% to 25% range, with the remaining balance in Gold.
Bitcoin: Daily Target Weight
The monthly rebalancing transactions, which repeatedly top up the weaker asset, have added significant value compared to a buy-and-hold strategy. Using the weight in Bitcoin, you can see how the monthly rebalancing brings the asset allocation back into line. Repeatedly doing this adds value while maintaining a constant level of risk.
Bitcoin: Daily Weight and Target Weight
The daily weights deviate much more than the monthly target weights due to the intra-month price movements between Bitcoin and Gold. For example, Bitcoin has beaten Gold in recent months, and so Bitcoin’s exposure has been reduced back down to the target weight during the monthly rebalancing process. This ensures the strategy maintains the optimised weights for Bitcoin and Gold.
This process keeps the amount of risk, as defined by volatility, roughly the same in each asset. That means BOLD maintains its risk level over time, without being overly exposed to either Bitcoin or Gold. This explains why BOLD’s volatility is so low, a key advantage over holding Bitcoin and Gold separately.
BOLD’s Volatility Is Comparable with Gold
Risk is not just a matter of volatility but of maximum drawdowns. Historically, Bitcoin drawdowns have been severe and Gold drawdowns, in the minds of many, less so. But in the 1980s and 1990s, Gold had prolonged drawdowns, and that could happen again one day. By diversifying between the assets, the largest drawdowns have been dampened. BOLD drawdowns have been much lower than both Bitcoin and Gold alone. The current drawdown is 7.5%. In contrast, Gold is down 17.4% from its all-time high, and Bitcoin is down 36.5%.
Max Drawdown: Gold, Bitcoin, and BOLD
This matters because BOLD compounds returns by regularly locking in profits. Family offices, with long-term investment horizons, understand this principle. Many opt for conservative, compounding, absolute-return strategies over beating the index, because if a portfolio halves, it needs to double to get back to square one. By avoiding large drawdowns, compounding can take place at a higher rate over the long term.
Volatility Comparison
Many believe Bitcoin is a highly volatile asset, but in reality, it has lower volatility than NVIDIA, Tesla, and META, and only slightly more than Amazon. Gold has lower volatility than Microsoft, as does BOLD.
Volatility Harvesting
Risk-weighting not only reduces overall volatility, but rebalancing transactions also add value through a process known as “volatility harvesting”. As the linked paper by Bouchey, Nemtchinov, Paulsen, and Stein states, “volatility is a drag on the compounding effect.”
While Bitcoin and Gold travel along different paths, it is notable how BOLD has historically been highly correlated with the global M2 money supply, much more so than Bitcoin or Gold in isolation. BOLD has also been an efficient way to express this macroeconomic view. M2 has grown from $60 trillion in 2015 to $118.6 trillion today. In that time, BOLD has beaten M2 by nearly 7x, in a calm manner. That ratio of outperformance has eased back in 2026 after a strong run in the prior two years, but has recently bounced back.
BOLD vs the Global Money Supply
Bitcoin and Gold ETF Flows
Over the past 90 days, Bitcoin and Gold ETFs have seen improving flows. Gold is now back in positive territory, while Bitcoin is close to neutral. The correlation between the asset flows has generally been negative but is currently positive. We assume this will not last for too long, as real rates peak and the dollar rally stalls.
The total value of Bitcoin and Gold ETFs is $620 billion, which is now rising again.
BOLD ETP
The 21Shares Bitcoin Gold ETP (BOLD) tracks the BOLD Index. The fund now holds $40.4 million in Bitcoin and Gold, held in safe custody with BitGo for Bitcoin and JP Morgan for Gold. The BOLD ETP outflows from June have stabilised. Volumes in August were up on July, but they’re still lower than what we saw earlier this year.
21Shares ByteTree BOLD ETP Price and Volume by Share Class in US$
BOLD ETP Listings
The 21Shares Bitcoin Gold ETP (BOLD) is listed in Switzerland, Germany, the Netherlands, France, Sweden, Italy, and the United Kingdom, actively trading in CHF, EUR, USD, SEK, and GBP. The ticker is BOLD.
The 21Shares Bitcoin Gold ETP trades in the primary market, meaning that purchases and sales result in direct buy or sell transactions of Bitcoin and Gold from the market. For further information, please visit BOLDETF.com, which offers extensive data and charts to help investors better understand the benefits of the strategy.
BOLD Videos
Please watch our recent videos with:
- Charlie Erith, Wiston Capital (March 2026)
- 21Shares with Max Michielsen and Darius Moukhtarzadeh (March 2026)
- Chris Wood, Chief Equity Strategist at Jefferies (February 2026)
- John Reade, Senior Market Strategist at the World Gold Council (January 2026)
- Izabella Kaminska, Founder of The Blind Spot (January 2026)
- Adrian Fritz, Chief Investment Strategist at 21Shares (January 2026)
Product Details
| Issuer | 21Shares AG, Switzerland |
| Launch Date | 27 April 2022 |
| Fee | 0.65% Per Annum |
| Custody | BitGo for Bitcoin, JP Morgan for Gold |
| Investment Objective | Risk-weighted Bitcoin and Gold Exposure |
| Benchmark | Kaiko ByteTree BOLD Index |
| Rebalancing Frequency | Monthly |
| ISIN | CH1146882308 |
| SEDOL | BK81V89 CH |
| WKN | A3GYXW |
| Ticker | BOLD SW (Switzerland), BOLD GY (Germany), BOLD FP (France), BOLD NA (the Netherlands), BOLD SS (Sweden), BOLD LN (United Kingdom), BOLD IT (Italy) |
| Listings | Switzerland, Germany, France, the Netherlands, Sweden, United Kingdom, Italy |
| Currency | USD, EUR, CHF, GBP, SEK |
Contact
For information on investing in BOLD, contact bold@bytetree.com.
If your investment firm or media outlet would like a private briefing on BOLD, we will be happy to oblige. If a physical meeting is not possible, we can arrange a Zoom call.
