Investors seeking exposure to both established and emerging safe-haven assets may soon have a new option. A recently proposed exchange-traded fund (ETF), the STKD Bitcoin & Gold ETF, seeks to offer investors a combined stake in Bitcoin and gold, eliminating the need for individual purchases of these assets.
Tidal Investments and Quantify Chaos Advisors, the group behind the ETF, filed the prospectus on Thursday, as reported by The Block. The fund aims to achieve dual exposure through a combination of Bitcoin and gold futures contracts, alongside existing ETFs focused on these assets.
This strategy hinges on the potential benefits of diversification by combining Bitcoin, a digital asset known for its volatility, with gold, a traditional safe haven known for its price stability. While historically, these assets haven’t always moved in tandem, the ETF’s proponents believe the pairing can offer a more balanced investment approach, potentially mitigating the effects of short-term market fluctuations.
It’s important to note that the STKD ETF won’t directly invest in physical Bitcoin or gold, nor will it track the spot prices of these assets.
The proposed ETF comes amidst growing interest in both Bitcoin and gold. Bitcoin, with a current market value of $1.215 trillion, has captured the imagination of investors worldwide. Gold, valued at a staggering $15.68 trillion, remains a dominant force in the global financial landscape.
Traditionally seen as an inflation hedge due to its inverse correlation with the U.S. dollar, gold offers a familiar form of wealth preservation. Proponents of Bitcoin, often dubbed “digital gold,” are striving to establish the cryptocurrency as a similar long-term store of value.
The STKD ETF proposal signifies a potential shift in the investment landscape. Combining these two distinct assets within a single ETF could offer investors a convenient and potentially more stable way to participate in both traditional and digital safe-haven markets.