UK's First Dual-Asset ETP Launches: How 21Shares Uses Gold to "Absorb" Bitcoin Volatility

21Shares today launched the BOLD Bitcoin and Gold ETP on the London Stock Exchange, marking the UK’s first listed product that combines these two assets within a single investment vehicle. The product employs a risk-weighted portfolio design aimed at reducing volatility while providing investors with return characteristics close to Bitcoin. This move reflects an improvement in the UK’s digital asset regulatory environment and signifies a new exploration by traditional financial institutions in compliant digital asset investment.

Innovations in Product Design

The core innovation of BOLD lies in its asset allocation approach. Unlike simple equal-weighting, the product uses a risk-weighted investment portfolio that integrates Bitcoin and gold, rebalancing monthly to maintain an equal level of risk exposure. What does this mean? In simple terms, it dynamically adjusts the weights based on the volatility characteristics of the two assets, rather than a fixed 50:50 split.

Key Features of the Product

• Dual Asset Exposure: Physically backed Bitcoin and gold, held by institutional-grade custodians (Coinbase, Anchorage, BitGo, etc.)
• Risk Management: The risk-weighted design has lower volatility compared to pure Bitcoin products, with gold’s stability smoothing out sharp crypto fluctuations
• Liquidity: Supports intraday trading, available for buying and selling during normal trading hours on the London Stock Exchange
• Fees: Total expense ratio of 0.65%, considered reasonable among similar products
• Monthly Rebalancing: Automatically adjusts asset allocation, eliminating the need for manual intervention by investors

What Does Historical Performance Indicate

BOLD is not a new concept. The product was first launched in Switzerland in April 2022 and has been traded on several major European exchanges. Looking at its track record, since launch through the end of 2025, it has achieved a return of 122.5% in GBP terms, outperforming the individual performance of Bitcoin and gold over the same period.

This data is quite interesting. What does it suggest? It indicates that over the past few years, this risk-weighted dual-asset strategy has proven effective—allowing participation in Bitcoin’s upside while reducing overall volatility through gold allocation. For investors optimistic about Bitcoin but concerned about rollercoaster markets, this product design offers tangible appeal.

Why Launch in London

Timing is crucial. The UK lifted restrictions on crypto exchange-traded products in October 2025, opening the door for 21Shares to introduce such products on the London Stock Exchange. Meanwhile, market demand for regulated digital asset investment tools continues to grow.

This reflects a broader trend: traditional financial institutions and regulators are shifting their attitude toward digital assets. No longer simply resisting, they are seeking ways within a compliant framework to offer better digital asset exposure to investors. The launch of BOLD precisely meets this need.

Market Significance

From a personal perspective, the launch of this product carries several implications. First, it provides traditional investors with a relatively gentle way to enter the crypto space. Bitcoin’s volatility has indeed deterred many institutional investors, and the addition of gold clearly alleviates this concern. Second, it demonstrates the progression of digital assets from the fringe to the mainstream—asset management firms are now offering such products on the London Stock Exchange in a formal manner. Third, it could attract more traditional investors, as they can now gain exposure to crypto assets through familiar exchanges and trading methods.

It’s worth noting that 21Shares has been very active recently. Just this week, the company received approval from US regulators for a spot ETF on Dogecoin, further illustrating its active engagement in compliant digital asset investment products.

Summary

The launch of BOLD ETP by 21Shares in London is a small but significant signal. It’s not just a new product; it reflects the improvement of the UK’s digital asset regulatory framework and responds to the demand from traditional financial institutions for digital asset investments. Through its risk-weighted dual-asset design, this product offers a new option for investors who are bullish on Bitcoin but wish to avoid extreme volatility. Based on the past performance of 122.5%, this strategy has demonstrated feasibility in practice. As more institutional products are launched within compliant frameworks, the digital asset investment ecosystem is gradually maturing.