A proposed exchange-traded fund is aiming to offer investors leveraged exposure to both Bitcoin BTC/USD and gold, eliminating the need for a direct asset purchase.
What Happened: Tidal Investments and Quantify Chaos Advisors filed the prospectus for the STKD Bitcoin & Gold ETF on Thursday. according to a report by The Block.
The ETF plans to offer dual exposure to the two assets via Bitcoin futures and ETFs, as well as gold futures and ETFs.
The investment strategy is rooted in the potential synergistic benefits of investing in both Bitcoin and gold, despite their historical non-correlation. The fund’s objective is to mitigate the effects of short-term market volatility on the overall investment result, potentially offering a more stable investment path.
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The ETF will not directly invest in Bitcoin and gold, nor will it track the spot prices of the assets in question.
Why It Matters: Gold and Bitcoin are two of the world’s largest financial assets in terms of value. While gold is the most valuable, with a price of $15.68 trillion, Bitcoin has shown remarkable potential throughout the years, and is currently valued at $1.215 trillion.
Gold is widely considered an inflationary hedge because of its inverse correlation with the U.S. Dollar. Bitcoin, often labeled as the “digital gold” by its advocates, is seeking to bolster its own narrative of being a wealth preserver.
Price Action: At the time of writing, Bitcoin was exchanging hands at $61,558.04, up 1% in the last 24 hours, according to data from Benzinga Pro. Spot Gold was trading at $2,322, down 0.23% in the last 24 hours.
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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