Bitcoin-Gold Index BOLD1 Outperforms Stocks with Less Risk
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The BOLD1 index combines bitcoin and gold on a risk-adjusted basis to benefit from diversification as their prices are not highly correlated.
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BOLD has outperformed global equities over the past year and the Nasdaq over 5 years, with lower volatility drawdowns. It aims to be a defensive strategy.
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Bitcoin's volatility has fallen as it matures, leading to its weighting in BOLD increasing to 25.3%, while gold is 74.7%. This rebalancing approach buys low and sells high.
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With the dollar weakening, both bitcoin and gold could benefit. Bitcoin is expanding its network and use cases, while gold rises with a weak dollar historically.
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BOLD may be forecasting global money supply growth to resume based on its strong momentum. Both assets have positive outlooks as investors are currently underweight.