New ETF Blends Gold And Crypto Investments
The post New ETF Blends Gold And Crypto Investments appeared on BitcoinEthereumNews.com.
The world of Exchange-Traded Funds (ETFs) is about to get a wild new addition: a single product offering investors exposure to both Bitcoin and gold. This brainchild of Tidal Investments and Quantify Chaos Advisors, called the STKD Bitcoin & Gold ETF, takes a novel approach by leveraging both assets for a potentially smoother ride in the often-choppy investment landscape. Marrying Opposites: A 100% Leveraged Bet On Diversification Traditionally, Bitcoin and gold have been seen as somewhat opposing forces in the investment world. Bitcoin, the volatile darling of the cryptocurrency scene, is known for its rapid price swings. Gold, on the other hand, is considered a safe-haven asset – or what most would say “God’s Currency” – often sought after during economic downturns due to its perceived stability. The STKD ETF capitalizes on this very difference. By using leverage, the ETF aims to amplify the returns of both Bitcoin and gold through a combination of futures contracts and existing ETFs focused on each asset class. This “stacking” strategy, as the filing describes it, essentially ties the performance of both assets together within the ETF. New stacked Bitcoin and gold ETF filed STKD Bitcoin & Gold ETFticker and fees tbaeffective date: Sep 9, 2024 Using 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 The underlying theory is that since Bitcoin and gold have historically exhibited low correlation – meaning their prices haven’t moved in tandem – the combined effect will be a more stable investment trajectory. As of today, the market cap of cryptocurrencies stood at $2.25 trillion. Chart: TradingView.com Regulatory Hurdles Remain The innovative design of the STKD ETF is certainly grabbing attention, but there are…
Filed under: News - @ June 28, 2024 7:20 pm