Bitwise introduces new actively managed ETF combining Bitcoin and gold holdings
A new actively managed investment vehicle combines Bitcoin with precious metals and mining equities as fund managers broaden cryptocurrency's function in macroeconomic and wealth-preservation approaches.
A new exchange-traded fund (ETF) from Bitwise Asset Management has been introduced as a hedge against currency debasement, highlighting the growing integration of digital assets into wider macroeconomic investment approaches in the wake of successful spot Bitcoin ETF launches.
Bitwise revealed the Bitwise Proficio Currency Debasement ETF on Thursday, which is now trading on the NYSE with the ticker symbol BPRO. This actively managed investment vehicle aims to combat the eroding purchasing power of fiat currencies by deploying a portfolio consisting of Bitcoin (BTC), precious metals and equities in the mining sector.
In contrast to spot Bitcoin ETFs, BPRO provides flexibility for discretionary distribution across cryptocurrency and commodity-related assets. This structure seems targeted at wealth management professionals who want Bitcoin exposure while avoiding the commitment to a crypto product focused on a single asset, especially given ongoing inflationary pressures.
The investment vehicle ensures a minimum 25% allocation to gold at all times and features an expense ratio of 0.96%.
Instead of highlighting potential gains, the fund is marketed around preserving capital, a positioning that demonstrates how cryptocurrency messaging is transforming within institutional investment circles.
Bob Haber, chief investment officer at Proficio Capital Partners, said that despite its long-term performance, "gold remains a ghost in the modern portfolio," citing research from Goldman Sachs showing that gold ETFs account for only a fraction of 1% of private financial holdings.
Debasement captures crypto's imagination and investment style
The gradual erosion of purchasing power over time, known as fiat currency debasement, has historically been a core concern among members of the Bitcoin community.
Karel Mercx, an investment specialist with Dutch advisory firm Beleggers Belangen, recently presented analysis suggesting that Bitcoin has not proven to be a dependable hedge against currency debasement.
The most notable indication, according to Mercx, occurred when Bitcoin failed to outperform even as US President Donald Trump openly challenged the Federal Reserve's independence.
When political interference with a central bank occurs, it can trigger concerns regarding monetary credibility and potential long-term inflation threats, circumstances that have traditionally favored assets perceived as stores of value. Gold reacted to these signals as expected, but Bitcoin did not, undermining its position as an effective near-term hedge against currency debasement.