Bitwise, Proficio debut ETF to hedge currency debasement

Bitwise Asset Management and Proficio Capital Partners launched the Bitwise Proficio Currency Debasement ETF on Thursday. The fund is designed to hedge currency risk by investing in assets that do not depend on government-issued currencies or national monetary and fiscal policy.

The ETF keeps at least 25% of its assets in gold and can add exposure to bitcoin, silver, platinum, and palladium. The portfolio may also hold shares of mining companies that produce these metals.

The debut comes amid geopolitical tensions and rising government debt in many countries. Gold prices have reached record highs this year. According to the managers, the minimum gold allocation is intended to anchor the portfolio with a widely traded store of value.

“I believe you have to view these as representing their own asset class,” said Bob Haber, chief investment officer and a founder of Proficio Capital Partners. “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.”

Haber described the strategy as focused on assets he considers “hard currencies,” rather than short-term trading in gold or other metals. In his view, “This is a long-term secular shift in the market.”

Bitwise is a digital-assets investment firm. Proficio Capital Partners is part of a Florida-based multi-family office. Fund materials emphasize assets whose value is less dependent on any single central bank or government.