Following the rebalancing on 30th September 2025, the new target weights for the BOLD Index are 33.3% Bitcoin and 66.7% Gold, a further 1% increase for Bitcoin over the previous month. Once again, as Bitcoin’s volatility falls and Gold’s volatility rises, the BOLD Index has increased exposure to Bitcoin at the expense of Gold. This is Bitcoin’s highest-ever target weight in the history of the BOLD Index. The target weight has seen Bitcoin exposure increase every month this year.
The 21Shares ByteTree BOLD 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.
The target weights last month were 32.3% and 67.7% (Bitcoin to Gold). Price changes over the month led to the last day’s weights at 30.8% Bitcoin and 69.2% Gold. This means the latest rebalancing has seen 2.5% added to Bitcoin and reduced from Gold to meet the new target weights.
BOLD Performance
In September, BOLD rose by 9.5%, Bitcoin rose by 4.4%, and Gold rose by 11.9%, while global equities rose by 3.4% in USD terms.
Bitcoin, Gold, BOLD, and Equities in USD – September 2025
Over the past year, BOLD has returned 54.4%, Bitcoin has returned +75.1%, in contrast to Gold with a +46.5% gain, while equities have risen by +15.6%.
Bitcoin, Gold, BOLD, and Equities - Past Year
Since the 21Shares ByteTree BOLD ETP’s inception on 27th April 2022, BOLD has returned +139.5%, Bitcoin has returned +178.3%, Gold is up +104.6%, while equities have risen by +50.5%.
Bitcoin, Gold, BOLD, and Equities - Since Inception
Monthly Rebalancing of the BOLD ETP
BOLD allocates to Bitcoin and Gold on a risk-adjusted basis using past volatility, which is calculated using 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.
Bitcoin and Gold’s Past 360-day Volatility
It is notable that Bitcoin’s 360-day volatility is falling rapidly, while Gold’s has been rising. Note how the short-term 180-day volatility for Bitcoin is leading the 360-day volatility lower. This is the lowest level of volatility on record and demonstrates that Bitcoin is much more stable than it has been in the past. This makes the asset more credible for institutional investors.
Rather than having the same amount of value invested in each asset, the BOLD strategy aims to hold an equal amount of “risk” in each asset and is hence “risk-weighted”. The volatility for Bitcoin and Gold over the past 360 days was observed to be 33.6% and 16.8%, respectively.
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. The volatility measures have resulted in new target weights of 33.3% Bitcoin and 66.7% Gold using this formula. For the first time, BOLD holds one-third in Bitcoin.
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 due to its high volatility at the time, which held it in good stead in the 2018 bear market. At other times, it has generally been in the 20% to 25% range, with the remaining balance in Gold.
Bitcoin 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
The daily weights deviate much more than the monthly target weights due to the intra-month price movements between Bitcoin and Gold. For example, if Bitcoin were to have a material fall in price, like it did in February, it would be boosted back up to the target weight during rebalancing. This ensures the strategy maintains the optimised weights on a regular basis.
This rebalancing is also a source of excess return. The red line shows the Bitcoin and Gold performance at the weights in April 2022 to date, which were 18.6% Bitcoin and 81.2% Gold. The excess return of BOLD (after fees) has been 20.3% since the ETP was launched, compared to buy and hold. Rebalancing transactions, alongside a risk-weighted asset allocation, deliver excess returns. This dynamic is much more powerful in Bitcoin and Gold than in other asset combinations.
BOLD Rebalancing Has Added 20.8% over Buy and Hold – Since Inception
If Bitcoin were particularly strong one month or Gold weak, the rebalancing process would reduce Bitcoin’s exposure back down to the target weight at the month’s end. This process keeps the amount of risk, as defined by volatility, roughly the same in each asset. That means BOLD maintains its level of risk over time, not being overly exposed to either Bitcoin or Gold. This explains why BOLD’s volatility is so low and a key advantage over holding Bitcoin and Gold independently.
BOLD Volatility Is Comparable with Gold
Gold is currently attracting more capital than Bitcoin, but October is a historically bullish month for Bitcoin, so that may change. In addition, the London ban on Bitcoin ETFs will be lifted on 8th October.
Bitcoin and Gold ETF Flows
It is notable that the total value of Bitcoin and Gold ETFs has now surpassed $572 billion. A trillion dollars will come sooner or later.
Gold and Bitcoin ETF AUM
Bitcoin, Ethereum, and BOLD ETP London Listing
The UK’s regulator, the Financial Conduct Authority (FCA), has announced that the crypto asset ETPs ban will be lifted for retail investors on Wednesday, 8th October 2025. The first day of trading has been indicated to be Monday, 13th October, but it is yet to be confirmed.
The application for the London listing of the 21Shares Bitcoin and Gold ETP (BOLD) will be made shortly after the Bitcoin and Ethereum ETPs have been approved. I shall make an announcement when we have more information. In the meantime, please visit BOLDETF.com, which is full of data and charts to help investors better understand the benefits of the strategy.
BOLD ETP
The 21Shares ByteTree BOLD ETP (BOLD) has continued to grow. The fund now holds $35.7 million of Bitcoin and Gold held in safe custody with Copper for Bitcoin and JP Morgan for Gold. It trades actively in CHF, EUR, USD, and GBP in Switzerland, Germany, the Netherlands, France, and Sweden. The ticker is BOLD.
21Shares ByteTree BOLD ETP Price and Volume by Share Class in US$
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.