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Highlights
- A new ETF to track Bitcoin and Gold has been submitted to the US SEC
- This is to capitalize on the massive hype around spot Bitcoin ETFs
- Crypto ETFs are now gaining traction in the broader financial world
A newly filed Exchange-traded Fund (ETF) aims to bring the duo of Bitcoin (BTC) and Gold together as a single product.
100% Leveraged Bitcoin And Gold ETF
Henry Jim, the popular analyst of ETF Hearsay shared the news of a stacked Bitcoin and gold ETF on X. According to the description of the proposed offering which was submitted to the United States Securities and Exchange Commission (SEC), it uses leverage to simultaneously provide 100% exposure to BTC and gold.
New stacked Bitcoin and gold ETF filed
STKD Bitcoin & Gold ETF
ticker and fees tba
effective date: Sep 9, 2024Using leverage, provides simultaneously exposure to performance of #Bitcoin and gold via bitcoin futures and ETFs, and gold futures and ETFs.
Investment Sub-Adviser… pic.twitter.com/9GyOYuwqKv
— ETF Hearsay by Henry Jim (@ETFhearsay) June 27, 2024
It is designed to achieve this through Bitcoin futures and ETFs as well as Gold futures and ETFs. This would be the first of its kind for such ETF products. Notably, the sub-adviser for the proposed offering is Quantify Chaos.
The STKD Bitcoin & Gold ETF, as it was named in the filing, is designed for long-term capital appreciation. As a newly organized offering, the portfolio turnover information is currently unavailable.
Speaking of the STKD Bitcoin and gold ETF, the filing system noted that “the Fund uses leverage to ‘stack’ the total return of holdings in the Fund’s Bitcoin strategy together with the total returns of holdings in the Fund’s Gold strategy.”
Mitigating Short-term Market Fluctuation Impact
Based on its design, every investment is designed to follow and potentially profit or lose from two different investment strategies.
Noteworthy, the decision to launch this product and adopt the STKD’s investment strategy is based on the belief that the combination of Bitcoin strategy and Gold strategy investments could offer complementary benefits. This theory was promulgated after considering both assets’ historically low correlation. It is worth noting that their historical price movements have not been closely related.
Ultimately, the product is just focused on mitigating the impact of short-term market fluctuation on the overall investment outcome by combining assets with low correlation. In the long run, this will potentially contribute to the prevalence of a more stable investment trajectory.
On its own, spot Bitcoin ETFs are doing well, grabbing a significant share of the broader ETF market. On Wednesday, the Bitcoin ETF market saw positive inflow which came to a total of over $21 million. This influx was led by Fidelity while BlackRock remained stagnant, recording zero inflows. On the other hand, Grayscale’s GBTC grabbed the eyeballs with its positive flows after an outflow streak.
Read More: Wall Street Embraces Altcoins with New Solana ETF: Pompliano
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