The STKD Bitcoin & Gold ETF, filed with the SEC by Tidal Investments and Quantify Funds, will allow investors to own real-world gold and digital gold Bitcoin at once through a mixed investment in Bitcoin and gold futures and ETFs.
An ETF that owns both traditional gold and digital gold
The STKD Bitcoin & Gold ETF is an actively managed exchange-traded fund (ETF) designed to achieve its investment objectives through investment vehicles such as U.S.-listed futures contracts and exchange-traded products (ETPs). According to its filing, the fund will invest in two complementary asset classes, the modern digital asset class "Bitcoin" and the traditional asset class "gold", and reduce short-term market risk by mixing the two less correlated assets. The impact of volatility on overall investment results, thereby providing a more stable investment trajectory.
The fund invests primarily in:
gold futures contract
Bitcoin futures contracts
Gold ETP
Bitcoin ETP
reverse repurchase agreement
Cash and cash equivalents
Because the fund uses futures, it will have a leverage effect. If the Fund had $100 in assets, the Fund would be expected to receive $100 of exposure to the Bitcoin strategy and $100 of exposure to the Gold strategy. This is similar to investing $100 in a Bitcoin strategy fund, borrowing $100, and then putting the borrowed $100 into a gold strategy fund.
Gold ETF vs Bitcoin ETF Comparison
The world's largest gold ETF by market capitalization, SPDR Gold Trust (ticker GLD), is up 14.4% this year and currently has a market capitalization of $62.7 billion. The Bitcoin spot ETF, which was officially listed in January, attracted the most funds with BlackRock’s IBIT, up 31% so far this year, and currently has assets of $18.8 billion.
However, comparing the chart below, the trends of the two this year seem to be extremely synchronized.
This Article Owning Traditional and Digital Gold ETFs at One Time, Can Gold + Bitcoin Really Diversify Risk? First appeared in Chain News ABMedia.
