Bitwise has launched a new ETF that pairs Bitcoin with precious metals to offer investors a hedge against what it calls the “debasement” of fiat currencies.
What launched
On Jan. 22, Bitwise and Boston-based Proficio Capital Partners (which manages roughly $5 billion) debuted the Bitwise Proficio Currency Debasement ETF, trading on the NYSE as BPRO. The fund is actively managed and aims to position assets that could benefit if fiat currencies lose purchasing power.
Holdings and strategy
BPRO will always hold at least 25% in gold and can allocate to silver, platinum, palladium, mining equities and Bitcoin. The manager adjusts exposures based on market conditions, targeting a blend of traditional hard assets and crypto designed to protect wealth from inflationary or monetary-policy shocks.
Market backdrop
Precious metals have already seen dramatic moves: gold and silver have climbed roughly 79% and 207%, respectively, over the past year (Yahoo Finance). Bitcoin — the largest digital asset by market capitalization — is down about 15% over the same period despite a October run that pushed it above $126,000 (CoinGecko).
Why “debasement”?
The ETF is pitched around a simple thesis: fears of money printing, aggressive deficit financing and rising inflation are driving demand for assets that retain buying power. Bitwise CIO Matt Hougan told Decrypt that debasement — the erosion of currency value over time — is the “biggest risk to the long-term financial health of a wealthy family.” He argued many investors and advisors have little or no exposure to assets that could mitigate that risk and used a personal anecdote — his son owning a Zimbabwean $10 trillion note as a curio — to underscore how quickly fiat can fail.
Fees and context
BPRO carries a 0.96% expense ratio, notably higher than Bitwise’s $3.5 billion spot Bitcoin ETF, which charges 0.20% and ranks as the fifth-largest spot Bitcoin ETF in the U.S. That difference reflects BPRO’s active management and multi-asset approach.
Institutional demand and adoption dynamics
The ETF launch comes amid ongoing debate about how gold and Bitcoin will behave under stress. Ray Dalio has advised allocating at least 15% of a portfolio to gold and Bitcoin, though he favors gold and doubts central banks will adopt Bitcoin. Hougan points to central bank gold purchases since 2022 as a key driver of the metal’s rally, saying that excess demand eventually “dried up all the available supply” and produced a parabolic move.
Central banks aren’t buyers of Bitcoin, but the advent of spot Bitcoin ETFs has created a new institutional demand channel. Hougan noted that institutional flows into spot Bitcoin ETFs have been buying more than 100% of the daily mined Bitcoin supply since the ETFs debuted in early 2024 — a dynamic he believes could produce steep price appreciation if it continues, much like gold’s recent run. Meanwhile, BlackRock CEO Larry Fink has described Bitcoin and gold as “assets of fear,” even as some market participants have observed Bitcoin acting more like a risk-on asset lately.
Who it’s for
Bitwise is marketing BPRO to financial advisors and investors seeking a hedge against currency debasement — a blended alternative to holding only gold or only Bitcoin. With its mix of metals, mining equities and crypto exposure, the ETF aims to offer a diversified way to protect purchasing power, albeit at a higher fee than single-asset ETFs.
Bottom line
BPRO is a first-of-its-kind, actively managed fund that formalizes a combined gold-plus-crypto “debasement” trade. Whether investors view it as a necessary hedge or an expensive diversification play will depend on their outlook for inflation, central bank behavior and continued institutional demand for Bitcoin.
Read more AI-generated news on: undefined/news
