BOLD ETP Launches on London Stock Exchange: A New Approach to Bitcoin and Gold Diversification

The 21Shares Bitcoin and Gold exchange-traded product, branded as BOLD, officially begins trading on the London Stock Exchange on January 13, marking a significant milestone for physically backed etp offerings in the U.K. market. This new etp provides investors with access to two of the world’s most sought-after alternative assets—bitcoin and gold—within a single, risk-weighted investment vehicle. The launch comes at a pivotal moment for regulated digital asset investment products in the United Kingdom.

Understanding the ETP Structure and Design Philosophy

BOLD represents the first U.K.-listed exchange-traded product to offer combined exposure to both bitcoin and gold in one investment vehicle. Rather than simply allocating equal capital to each asset, the etp employs a sophisticated monthly rebalancing strategy that maintains equal risk exposure. This approach is designed to reduce volatility compared to holding bitcoin alone, while preserving growth potential.

The product’s underlying assets—bitcoin and gold—are held by institutional-grade custodians, ensuring security and compliance standards. The etp carries a total expense ratio of 0.65%, positioning it competitively within the market for regulated digital asset products. The monthly rebalancing mechanism works by trimming positions in the stronger-performing asset and adding to the weaker one, a strategy intended to smooth returns while potentially enhancing long-term performance.

Performance Track Record and Market Comparison

Since its introduction in April 2022 on Swiss exchanges, this etp has demonstrated compelling returns. Through the end of 2025, it generated a 122.5% return in sterling terms, outperforming both bitcoin and gold when held individually over the same period. Such performance underscores the potential value of a diversified approach combining the two assets.

For context, bitcoin recently traded near $83.69K as of late January 2026, reflecting significant volatility in the broader cryptocurrency market. Gold, traditionally viewed as a store of value and portfolio hedge, has maintained its appeal during market uncertainty. The etp’s combination of both assets targets investors seeking diversification beyond traditional portfolio construction.

Market Conditions: Regulatory Progress and Trading Activity

The launch follows the lifting of U.K. restrictions on cryptocurrency exchange-traded products in October 2024. This regulatory breakthrough opened the door for a wave of digital asset etp offerings. In the first month after the ban was lifted, the London Stock Exchange recorded approximately $280 million in trading volume for exchange-traded notes, ranking third globally after Xetra and SIX Swiss Exchange, according to reports from IFA Magazine.

This regulatory environment has created momentum for etp adoption among institutional and retail investors seeking regulated exposure to crypto assets. The availability of physically backed products reduces custody concerns and increases accessibility for investors who prefer traditional exchange-trading mechanisms.

Investment Strategy: Risk Management Through Diversification

BOLD’s design philosophy centers on addressing a key challenge for crypto investors: bitcoin’s inherent volatility. By blending bitcoin’s growth potential with gold’s stabilizing role as a store of value, the etp delivers lower volatility than bitcoin alone while maintaining meaningful upside exposure.

The monthly rebalancing process—shifting capital from outperformers to underperformers—creates a contrarian dynamic within the fund structure. This mechanism is particularly valuable during volatile market periods when assets move sharply in different directions. For investors uncomfortable with the full volatility of direct bitcoin exposure, this etp offers a middle ground.

Broader Implications for the Digital Asset Market

The introduction of BOLD on a major global exchange reflects growing mainstream acceptance of cryptocurrency-linked investment products. Across the broader market, spot crypto trading volumes halved from $1.7 trillion in 2025 to approximately $900 billion in 2026, suggesting market consolidation and more cautious investor positioning amid macroeconomic uncertainties.

Despite market cooling, certain segments show resilience. Bitcoin miners who have diversified into artificial intelligence infrastructure and high-performance computing continue to outperform, indicating strategic adaptability within the industry. Similarly, the success of projects like Pudgy Penguins—which has scaled from speculative “digital luxury goods” into a multi-vertical consumer IP platform with over $13 million in retail sales—demonstrates that differentiated strategies can thrive even during market downturns.

Key Takeaway

The launch of BOLD on the London Stock Exchange represents an important milestone for institutional-grade etp products in crypto markets. By offering physically backed, regulated exposure to bitcoin and gold with professional risk management through rebalancing, this exchange-traded product appeals to a broadening investor base seeking diversification and reduced volatility. As regulatory frameworks continue to evolve globally, such etp offerings are likely to attract growing institutional attention.