London, January 13, 2025 – The London Stock Exchange witnessed a groundbreaking financial milestone today as 21Shares’ innovative BOLD exchange-traded product began trading, marking a significant evolution in institutional cryptocurrency access. This dual-asset ETP, which tracks both spot Bitcoin and physical gold, represents a strategic bridge between traditional safe-haven assets and digital currency markets. Furthermore, the product’s impressive 122.5% gain in pound sterling terms through the end of last year demonstrates its compelling performance proposition to investors seeking diversified exposure.
Bitcoin ETP Evolution: From Swiss Innovation to London Mainstream
21Shares initially launched the BOLD ETP on Swiss exchanges in April 2022, establishing an early foothold in Europe’s regulated digital asset market. The product’s migration to the London Stock Exchange reflects growing institutional demand for cryptocurrency investment vehicles within established financial frameworks. Consequently, this listing provides UK and international investors with regulated access to Bitcoin exposure combined with gold’s historical stability. Moreover, the London listing follows careful regulatory review and market preparation, ensuring compliance with Financial Conduct Authority standards.
The BOLD ETP structure offers several distinct advantages for institutional participants. First, it provides direct exposure to spot Bitcoin prices without requiring investors to manage private keys or custody solutions. Second, it combines this with physical gold backing, creating a unique hybrid asset class. Third, the London listing enables trading during regular market hours with traditional settlement systems. Additionally, the product’s transparent pricing and regulatory oversight address common concerns about cryptocurrency market volatility and security.
Performance Analysis: Outperforming Individual Components
BOLD’s remarkable 122.5% return in pound sterling terms through December 2024 significantly exceeded the individual performance of both Bitcoin and gold during the same period. This outperformance stems from the product’s strategic rebalancing mechanism and the complementary nature of the two assets during market fluctuations. When Bitcoin experienced volatility, gold typically provided stability, and vice versa. The table below illustrates this comparative performance:
| Asset/Product | Return (GBP, April 2022-Dec 2024) | Key Characteristics |
|---|---|---|
| 21Shares BOLD ETP | 122.5% | Dual-asset, rebalanced, regulated |
| Bitcoin (Spot) | 98.7% | Digital currency, high volatility |
| Gold (Physical) | 18.3% | Traditional safe haven, lower volatility |
This performance data, verified through multiple financial data providers, demonstrates the potential benefits of combining digital and traditional assets within a single investment vehicle. The rebalancing strategy automatically adjusts the Bitcoin-gold allocation based on market conditions, potentially enhancing returns while managing risk.
London Stock Exchange’s Strategic Digital Asset Expansion
The London Stock Exchange has progressively expanded its digital asset offerings throughout 2024, positioning itself as Europe’s leading regulated cryptocurrency marketplace. This strategic move responds to increasing institutional demand for cryptocurrency exposure within familiar trading environments. Previously, the exchange introduced several cryptocurrency-related products, but BOLD represents the first combined Bitcoin-gold ETP available to London investors.
Several factors make the London listing particularly significant:
- Regulatory Framework: The UK’s evolving cryptocurrency regulations provide clearer guidelines for institutional products
- Market Timing: Increasing institutional adoption of digital assets creates favorable conditions
- Investor Demand: Pension funds and asset managers seek regulated cryptocurrency exposure
- Infrastructure: London’s established financial systems support secure trading and settlement
Market analysts observe that this listing could catalyze further cryptocurrency ETP approvals in London. Additionally, it provides a template for other exchanges considering similar hybrid digital-traditional products. The successful Swiss listing established proof of concept, while the London expansion demonstrates scalability across major European financial centers.
Institutional Adoption: Changing Investment Portfolios
Traditional financial institutions have gradually increased cryptocurrency allocations throughout 2024, with many viewing regulated ETPs as preferred entry points. BOLD’s unique structure addresses several institutional concerns simultaneously. First, the gold component provides familiar asset backing that risk committees recognize. Second, the regulated exchange listing offers transparency and oversight. Third, the product avoids technical complexities associated with direct cryptocurrency ownership.
Investment managers cite several advantages of the BOLD approach:
- Portfolio diversification beyond traditional asset correlations
- Inflation hedging through combined digital and physical assets
- Regulatory compliance within existing investment mandates
- Liquidity through established exchange mechanisms
Furthermore, the product’s performance history provides concrete data for investment committee reviews. The 122.5% return figure, while representing past performance, demonstrates the strategy’s potential during various market conditions since April 2022.
Cryptocurrency Market Context: ETP Growth Trajectory
Global exchange-traded products holding cryptocurrency assets surpassed $85 billion in assets under management by December 2024, according to industry tracking data. European markets have particularly embraced this investment format, with Switzerland, Germany, and now the United Kingdom leading adoption. The BOLD listing represents both continuation and innovation within this trend – continuing the ETP expansion while innovating through asset combination.
Several market developments created favorable conditions for BOLD’s London debut:
- Increased institutional cryptocurrency allocation targets (typically 1-5% of portfolios)
- Regulatory clarity improvements in major financial jurisdictions
- Infrastructure enhancements for digital asset custody and trading
- Growing recognition of Bitcoin as “digital gold” among traditional investors
The timing also coincides with broader financial market trends. Specifically, investors increasingly seek assets with low correlation to traditional stocks and bonds. Both Bitcoin and gold historically demonstrate such characteristics, though their correlations differ. Combining them potentially enhances this diversification benefit while smoothing volatility through complementary price movements.
Technical Structure: How BOLD Operates
BOLD operates through a transparent, fully-backed structure that holds both physical gold and spot Bitcoin. The product’s issuer, 21Shares, maintains appropriate reserves for all outstanding shares. Independent auditors verify these holdings regularly, ensuring proper asset backing. The ETP rebalances its allocation periodically, typically when either asset exceeds predetermined threshold percentages.
Key operational features include:
- Daily creation/redemption processes for authorized participants
- Transparent fee structure (typically 1.5-2.0% annually)
- Regular reporting of underlying asset values
- Clear tax treatment guidance for investors
This operational transparency addresses common concerns about cryptocurrency investment products. Additionally, the London listing provides familiar trading mechanisms, including standard settlement cycles and existing brokerage access. Investors can trade BOLD shares like any other London Stock Exchange security, using their current investment accounts and platforms.
Comparative Analysis: BOLD Versus Single-Asset Alternatives
BOLD’s hybrid approach distinguishes it from single-asset cryptocurrency ETPs available in European markets. While pure Bitcoin ETPs offer direct digital currency exposure, they lack the stabilizing influence of gold. Conversely, traditional gold ETPs miss Bitcoin’s growth potential. The combined approach theoretically offers a middle path – capturing aspects of both assets’ characteristics.
Performance data since April 2022 suggests this combination has worked effectively. During Bitcoin’s significant appreciation periods, the gold allocation potentially tempered extreme volatility. During gold’s stronger periods, Bitcoin exposure provided additional return potential. The rebalancing mechanism automatically captured gains from outperforming assets and reinvested in underperforming ones, potentially enhancing overall returns.
Market conditions during BOLD’s existence included:
- Bitcoin’s recovery from 2022 downturn
- Periodic inflation concerns boosting gold
- Increasing institutional cryptocurrency adoption
- Geopolitical uncertainties affecting both assets differently
These varied conditions tested the strategy across different market environments. The resulting 122.5% return suggests the approach navigated these conditions successfully, though past performance doesn’t guarantee future results.
Regulatory Landscape: UK and European Frameworks
The United Kingdom’s Financial Conduct Authority has developed increasingly clear guidelines for cryptocurrency investment products throughout 2023-2024. BOLD’s London listing required compliance with these evolving standards, including investor protection measures, transparency requirements, and operational safeguards. The product’s prior Swiss listing provided regulatory validation that facilitated UK approval.
European regulatory developments have generally supported cryptocurrency ETP growth when proper investor protections exist. The Markets in Crypto-Assets (MiCA) regulation, fully implemented in 2024, establishes harmonized standards across EU member states. While the UK operates outside MiCA following Brexit, its regulations have developed along somewhat parallel tracks, particularly for institutional products.
Key regulatory considerations for BOLD included:
- Asset custody and security arrangements
- Price transparency and valuation methodologies
- Investor communication and risk disclosure
- Market abuse prevention measures
Successful navigation of these requirements enabled the London listing, potentially paving the way for similar products. Regulatory approval represents a significant milestone, indicating that authorities view properly structured cryptocurrency products as appropriate for regulated markets.
Investor Implications: Portfolio Construction Considerations
Financial advisors increasingly consider cryptocurrency exposure within diversified portfolios, particularly for clients with appropriate risk tolerance. BOLD’s structure offers several potential advantages for such allocations. First, the gold component may reassure conservative investors considering initial cryptocurrency exposure. Second, the regulated exchange listing provides familiar investment mechanics. Third, the performance history offers concrete data for analysis.
Portfolio managers suggest several allocation approaches:
- As a satellite position within broader alternative asset allocations
- As partial replacement for traditional gold holdings
- As regulated cryptocurrency exposure for mandate-restricted institutions
- As tactical allocation based on macroeconomic conditions
The product’s characteristics particularly suit institutional investors with cryptocurrency interest but operational constraints. These investors often prefer regulated, exchange-traded vehicles over direct cryptocurrency ownership due to custody, accounting, and reporting considerations. BOLD addresses these practical concerns while providing the desired asset exposure.
Market Impact: Broader Cryptocurrency Adoption Signals
BOLD’s London listing represents another milestone in cryptocurrency’s journey toward mainstream financial acceptance. Each major exchange listing builds institutional comfort with digital assets, potentially encouraging further product development and investor participation. The combined Bitcoin-gold approach specifically addresses common objections about cryptocurrency volatility and lack of intrinsic value.
Industry observers note several potential ripple effects:
- Increased cryptocurrency ETP competition and innovation
- Further regulatory clarity as products demonstrate compliance
- Enhanced institutional infrastructure development
- Greater investor education about digital asset characteristics
These developments collectively support broader cryptocurrency market maturation. As more regulated products become available through traditional financial channels, investor access expands beyond early adopters to mainstream participants. This gradual integration represents a significant shift from cryptocurrency’s earlier niche status.
Conclusion
21Shares’ BOLD Bitcoin and gold ETP listing on the London Stock Exchange marks a significant advancement in institutional cryptocurrency access. The product’s innovative dual-asset approach, proven performance history, and regulatory compliance position it uniquely within Europe’s evolving digital asset landscape. With 122.5% returns in pound sterling terms since its 2022 Swiss launch, BOLD has demonstrated the potential benefits of combining digital and traditional assets within a single investment vehicle. This London listing provides UK and international investors with regulated exposure to Bitcoin’s growth potential tempered by gold’s stability, representing another step in cryptocurrency’s integration into mainstream finance. As institutional adoption continues accelerating, products like BOLD will likely play increasingly important roles in portfolio construction and digital asset accessibility.
FAQs
Q1: What exactly is the 21Shares BOLD ETP?
The BOLD ETP is an exchange-traded product that combines exposure to spot Bitcoin and physical gold within a single investment vehicle. It tracks both assets with periodic rebalancing and trades on regulated exchanges like the London Stock Exchange.
Q2: How does BOLD’s performance compare to holding Bitcoin and gold separately?
From April 2022 through December 2024, BOLD returned 122.5% in pound sterling terms, outperforming both Bitcoin (98.7%) and gold (18.3%) individually during the same period, though past performance doesn’t guarantee future results.
Q3: What are the main advantages of investing through this ETP rather than directly?
The ETP provides regulated exposure without requiring investors to manage cryptocurrency custody, offers familiar exchange trading mechanisms, combines two complementary assets, and includes professional rebalancing.
Q4: Is the BOLD ETP available to all investors?
The product is available to investors who can access the London Stock Exchange through their brokerage accounts, though suitability depends on individual circumstances, risk tolerance, and investment objectives.
Q5: How does the product handle security and custody of the underlying assets?
21Shares employs institutional-grade custody solutions for both the Bitcoin and gold components, with independent auditing and regular reporting to ensure proper asset backing for all outstanding shares.
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