In line with the most recent report, a novel Exchange-Traded Fund (ETF) aiming to offer investors exposure to both Bitcoin and Gold simultaneously has been officially submitted for approval. The initial SEC prospectus reveals that the combination of these low-correlation assets is designed to counteract short-term price fluctuations.
A fresh ETF proposal, known as STKD Bitcoin&Gold ETF, has been put forward by Tidal Investments and Quantify Chaos Advisors. This innovative ETF intends to provide investors and traders with exposure to both Bitcoin (BTC) and Gold through a blend of futures and ETFs. Additionally, the ETF will primarily invest in underlying funds that offer exposure to Gold and Bitcoin, cash equivalents, and reverse repurchase agreements.
The collaborative ETF venture merges Bitcoin and Gold, leveraging to deliver 100% exposure to each asset. More details can be found here: [https://t.co/LaQp8uuchm](https://t.co/LaQp8uuchm) as shared by Eric Balchunas on June 27, 2024.
Furthermore, the preliminary SEC prospectus underscores that the amalgamation of assets with low correlations enables the Fund to mitigate the effects of short-term fluctuations on the overall investment performance. It’s worth noting that the ETF will not directly invest in Bitcoin or seek exposure to its current spot price. The fund will employ leverage to amplify the total returns on holdings within its Bitcoin and Gold strategies.
An investment in the Fund is mirrored by an equal exposure to both the Fund’s Bitcoin and Gold strategies. This stacking mechanism ensures that the return of the Gold strategy, after deducting financing costs, is layered atop the returns of the Bitcoin strategy, under the same conditions. The underlying funds may acquire exposure to the asset classes directly or through derivative instruments like futures contracts.
The investment model of the Bitcoin and Gold ETF clarifies that a $1 investment in the Fund correlates to a $1 investment tracking the Fund’s Bitcoin strategy. Likewise, the same investment sum would track the Fund’s Gold strategy. Each dollar invested essentially follows and potentially gains or loses from two distinct investment strategies.
The rationale behind the Fund’s investment strategy is the belief that investing in both the Bitcoin and Gold strategies may offer synergistic benefits due to their historically low correlation. By combining assets with low correlation, the Fund aims to mitigate the impact of short-term market fluctuations on the overall investment performance, potentially ensuring a more stable investment path.
The stacked ETF is scheduled to become effective on September 9, 2024. Presently, there is no designated stock ticker or associated fees associated with it.
Pending approval, the largest Gold ETF by market cap, SPDR Gold Trust (GLD), reported a remarkable 12.7% gain this year with a market cap of $62 billion. In a similar vein, BlackRock’s IBIT, a leading player in the Bitcoin ETF market with a market cap of $116 billion, demonstrated a Year-To-Date gain of 8.2%.
As of now, Bitcoin is trading at $61,276, having surged by 0.87% in the past 24 hours.
For more insights on Bitcoin, consider the following resources:
– Buy Bitcoin Guide
– Bitcoin Wallet Tutorial
– Check 24-hour Bitcoin Price
– Stay updated with More Bitcoin News
– Learn more about What is Bitcoin?
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