By Suzanne McGee
Jan 22 (Reuters) – As geopolitical tensions soar and government debt loads rise in many nations, digital assets investment firm Bitwise and Proficio Capital Partners, a division of a Florida-based multi-family office, are rolling out an exchange-traded fund designed to invest in alternatives to the dollar and other currencies, ranging from gold to bitcoin.
The Bitwise Proficio Currency Debasement ETF, launched on Thursday, will offer investors a blend of those alternatives, starting with a minimum of 25% of its assets in gold, which has climbed to record highs this year. But the fund’s backers said the logic behind the fund is not just about capturing a momentum trade in gold but about finding assets not tied to any individual currency or set of national monetary and fiscal policies.
“I believe you have to view these as representing their own asset class,” one that is distinct from stocks or bonds denominated in dollars or other government-issued currencies, said Bob Haber, chief investment officer and a founder of Proficio. “And when you’re not really being compensated for the risk of owning government bonds or assets denominated in dollars, euro or whatever, it makes sense to look for alternatives.”
In addition to gold and bitcoin, the ETF will offer exposure to silver, platinum and palladium, as well as the mining companies that produce these and other metals.
Even if gold and silver prices pause their rally, Haber said he expects a growing number of investors to demonstrate interest in owning what he refers to as “hard currencies.”
“This is a long-term secular shift in the market,” he said.
(Suzanne McGee in Providence, Rhode Island; Editing by Chris Reese)
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