Why 21Shares is Merging Bitcoin and Gold as Their Correlation Improves

21Shares has introduced a new exchange-traded product (ETP) that combines Bitcoin and gold. This launch coincides with a trend where these two assets are starting to align again, indicating a change in how investors perceive cryptocurrency within their global investment portfolios.

Key Takeaways

21Shares has launched the Bitcoin Gold ETP (BOLD), blending Bitcoin and gold in one product.
Gold and Bitcoin are showing improved alignment, moving away from their earlier divergence.
BOLD uses a unique allocation strategy that adjusts exposure based on the volatility of each asset.
The positive correlation suggests that Bitcoin may resume its traditional function as a stabilizer in times of uncertainty.

This strategic pivot indicates that the landscape for both Bitcoin and gold investments may be evolving, catering to a changing investor landscape.

Why 21Shares is merging Bitcoin and gold as their correlation improves

The 21Shares Bitcoin Gold ETP [BOLD], which made its debut on the London Stock Exchange on January 13, provides investors with a regulated means to gain exposure to both Bitcoin and physical gold through one single product.

While promoted as a tool for diversification, the timing of this launch reflects an emerging macro trend: Bitcoin and gold are increasingly being viewed as complementary hedge assets rather than as competing investment options. This is an important shift, as gold has long been considered the primary store-of-value asset globally. Meanwhile, Bitcoin has often behaved similarly to a high-beta technology stock over the past two years. However, this dynamic seems to be changing now.

The Realignment of Bitcoin and Gold

Recent market indicators show that Bitcoin and gold are starting to move together again after a period of divergence. Since September, gold has experienced a price increase of nearly 28%, rising from approximately $3,600 to over $4,590. At the same time, Bitcoin has bounced back by around 9%, recovering from its mid-December low of nearly $86,000 to surpass $94,000.

Gold and Bitcoin price correlation

Source: TradingView

More significantly, correlation metrics confirm this transition. The 20-period correlation between gold and Bitcoin has climbed to +0.56, marking its strongest positive reading in several months. Meanwhile, the correlation indicator for Bitcoin relative to gold has moved closer to zero after being deeply negative in October and November.

Bitcoin and gold correlation

Source: TradingView

This trend indicates that investors are beginning to regard Bitcoin and gold as part of the same macro risk framework once again, which directly benefits multi-asset products like BOLD.

Understanding the Structure of BOLD

BOLD uses a rules-based, inverse-volatility weighting system to blend exposure to both Bitcoin and gold. Instead of frequently adjusting allocations, this product automatically reallocates weight to the asset that is more stable at any given time.

If Bitcoin shows increased volatility, BOLD allocates more to gold. Conversely, if gold becomes more volatile, Bitcoin receives a larger allocation. This approach keeps the overall portfolio risk balanced, preventing either asset from overpowering performance during market stress.

The product undergoes monthly rebalancing and currently manages around $40.1 million in assets. It has a reported Sharpe ratio of 1.79 over the last three years and charges a 0.65% annual management fee. Importantly, the assets are physically backed, with Bitcoin and gold held by institutional-grade custodians.

Bitcoin's Evolving Role in Investment

Throughout most of 2024 and 2025, Bitcoin had been closely correlated with equities and risk assets, which limited its utility as a hedge. However, the increasing correlation with gold suggests that this pattern may soon be changing.

Should this trend continue, Bitcoin could regain its position as a stabilizing asset in investment portfolios during times of monetary and geopolitical uncertainty—conditions where gold has typically excelled.