The exchange-traded fund, which filed its prospectus on Thursday, seeks to provide traders and investors with exposure to Bitcoin and gold without having to purchase both assets.
STKD with leverage Bitcoin BTC
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The & Gold ETF from Tidal Investments and Quantify Chaos Advisors aims to provide simultaneous exposure to the performance of: Bitcoin There are also gold and gold futures and ETFs through Bitcoin futures and ETFs.
So why would anyone want to invest in two historically uncorrelated assets? According to the SEC preliminary prospectus, the strategy is based on the idea that combining investments in Bitcoin and gold strategies can provide complementary benefits.
“The fund aims to reduce the impact of short-term market fluctuations on overall investment results by blending assets with low correlations, thereby providing a potentially more stable investment trajectory,” the filing said.
The ETF will use leverage because it “stacks” the total return of holdings in the fund’s Bitcoin strategy with the total return of holdings in the fund’s gold strategy, the filing states. The ETF does not invest directly in Bitcoin or any other digital asset, does not seek direct exposure to or invest in the current spot price of Bitcoin, and does not invest directly in gold or bullion.
“Essentially, each dollar invested in the fund provides approximately $1 of exposure to the fund’s Bitcoin strategy and approximately $1 of exposure to the fund’s Gold strategy. Thus, the returns (net of finance costs) of the Gold strategy are essentially cumulative. In addition to the returns (net of finance costs) of the Bitcoin strategy, “the Underlying Fund may obtain exposure to the Underlying Asset Classes either directly or through the use of derivative instruments such as futures contracts,” according to the filing.
The SPDR Gold Trust (ticker GLD), the largest gold ETF by market cap, is up 12.7% this year. It has a market cap of $62 billion.
Among spot Bitcoin ETFs launched in January, BlackRock’s IBIT leads the way with a market capitalization of $116 billion and is up 8.2% since the beginning of the year.
The application lists an effective date of September 9, 2024 for the stacked ETF, but does not include a stock ticker or associated fees.
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