In a significant move amid rising geopolitical tensions and increasing burdens of national debt, the investment firm Bitwise and Proficio Capital Partners, part of a Florida-based multi-family office, have launched a new exchange-traded fund (ETF) that aims to provide investors with alternatives to traditional currencies, including gold and bitcoin.
The Bitwise Proficio Currency Debasement ETF was introduced on Thursday and is set to strategically allocate at least 25% of its assets to gold, a commodity that has recently reached record high prices. However, the rationale behind this fund extends beyond merely capitalizing on the current momentum of gold. The creators intend to build a portfolio that is insulated from the fluctuations of individual currencies and the accompanying monetary and fiscal policies that govern them.
Bob Haber, the chief investment officer and a co-founder of Proficio, emphasized the necessity of viewing these digital and precious assets as an independent asset class. He noted that in times when investors are not adequately compensated for the risks associated with government bonds or assets denominated in conventional currencies—such as the dollar or euro—it becomes increasingly prudent to explore alternative options.
The ETF will not only focus on gold and bitcoin but will also encompass other precious metals, namely silver, platinum, and palladium. Additionally, it will include investments in mining companies that extract these metals, broadening the scope of assets available to investors seeking to hedge against currency devaluation.
Haber anticipates that regardless of any short-term pauses in the price increases of gold and silver, there will be a significant shift in investor behavior, leaning towards what he describes as “hard currencies.” He views this trend as indicative of a long-term secular change in the market dynamics, signaling a growing desire among investors to diversify their portfolios beyond traditional currency-backed assets.
