ByteTree CEO: “Gold and Bitcoin will be important components of an investment portfolio for years to come”

Monday (July 4th) Charlie EritLead Portfolio Manager and CEO at research-oriented investment advisor ByteTree resource managementwrote about the importance of gold and Bitcoin as hedges against monetary policy errors.

ByteTree, founded in 2014, is “a research-driven boutique providing institutional-grade cryptocurrency investment and data solutions on Bitcoin and other cryptocurrencies, as well as gold and silver, for the digital asset market.”

In a note shared with CryptoGlobe, the CEO of ByteTree said:

At ByteTree, we believe gold and bitcoin will be important components of an investment portfolio for years to come. Not because an increase is guaranteed (we don’t know the future), but because in an inflationary era, they act as a hedge against policy errors in both directions: too lax, owning bitcoin; too tight, you own the gold.

The confluence of slowing economic activity, rising agricultural production and falling commodity prices appears to have eased inflationary concerns for the time being. The market is starting to be encouraged that the battle against inflation has been won and we are nearing the end of the rate hike cycle. But it is a difficult respite.

On the one hand, if politicians relax in terms of tightening measures, they will reignite inflationary pressures in one fell swoop. The danger is that the Fed and other central banks become convinced that the battle has been won and change the direction of the monetary journey, at which point inflation will simply pick up again and perhaps the bumper harvests won’t be as good next year. . On the other hand, it is clear that the current arrangements have also caused a strong economic slowdown...

Central banks are therefore faced with the unenviable choice of bringing down the world economy or feeding the inflation tiger. The political consequences of the former are hard to digest, suggesting that any evidence that inflation is under control will be harnessed and policies loosened. Since inflation is essentially a monetary phenomenon, it will not disappear under such circumstances.

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He went on to mention that earlier this year his company, in partnership with cryptocurrency-focused regulated index provider Vinter, had launched the Vinter ByteTree BOLD indexwhich “brings together these extraordinary assets each month on an equal risk weighted basis.”

In April 2022, the ETP provider 21Shares and ByteTree launched the “21Shares ByteTree BOLD ETP”, which according to Erith is “the first ETP in the world that combines bitcoin and gold” and which “tries to hedge against inflation by tracking an index that includes bitcoin and gold and rebalances itself monthly according to volatility inverse history (360 days) of each resource.

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