A recently published report unveils the submission of a novel Exchange-Traded Fund (ETF) designed to offer investors exposure to both Bitcoin and Gold simultaneously.
The preliminary SEC prospectus details the strategy of blending these low-correlation assets to mitigate short-term price volatility. The proposed STKD Bitcoin&Gold ETF, jointly introduced by Tidal Investments and Quantify Chaos Advisors, aims to provide combined exposure to Bitcoin and Gold through futures and ETFs. The ETF will predominantly invest in underlying funds linked to gold and Bitcoin, along with cash equivalents and reverse repurchase agreements.
The innovative ETF, titled STKD Bitcoin&Gold, leveraging to deliver 100% exposure to each, has been filed. For more details, visit: [link].
Eric Balchunas (@EricBalchunas) shared this development on June 27, 2024.
The preliminary SEC prospectus further explains that by blending these assets with low correlations, the Fund intends to dampen the impact of short-term fluctuations on overall investment outcomes. Notably, the ETF will not directly invest in Bitcoin or seek direct exposure to its current spot price. Instead, it will utilize leverage to amplify returns from its Bitcoin and gold strategies.
Essentially, every dollar invested in the Fund translates to approximately one dollar of exposure to both its Bitcoin and Gold strategies. This means that the return from the Gold strategy, adjusted for financing costs, is stacked atop the returns from the Bitcoin strategy. The underlying funds may gain exposure to these asset classes directly or through derivative instruments such as futures contracts.
Additional insights on the Bitcoin and Gold ETF indicate that each dollar invested in the Fund tracks the performance of its respective Bitcoin and Gold strategies, similar to how the prices of Bitcoin and Gold move. This setup allows for potential profit or loss from both investment strategies with a single investment.
The investment strategy of the Fund is underpinned by the belief that combining investments in Bitcoin and Gold could yield complementary benefits due to their historically low correlation in price movements. By blending these assets with low correlation, the Fund seeks to stabilize investment trajectories by reducing the impact of short-term market fluctuations.
The filing stipulates that the STKD ETF will become effective on September 9, 2024, although specifics such as a stock ticker or associated fees have yet to be disclosed.
Amidst these developments, the SPDR Gold Trust (GLD), the largest gold ETF by market capitalization, has recorded a 12.7% gain this year with a market cap of $62 billion. Meanwhile, BlackRock’s IBIT, leading the Bitcoin ETF market since its debut in January, boasts a market cap of $116 billion with a Year-To-Date gain of 8.2%.
At the time of reporting, Bitcoin was trading at $61,276, reflecting a 0.87% increase over the past 24 hours.
For more information:
– Buy Bitcoin Guide
– Bitcoin Wallet Tutorial
– Check 24-hour Bitcoin Price
– More Bitcoin News
– What is Bitcoin?
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