Quantify Funds and Tidal Investments submitted a prospectus to the U.S. Securities and Exchange Commission (SEC) on June 26th for the STKD Bitcoin & Gold ETF, a hybrid ETF focused on Bitcoin and gold. The purpose of this ETF is to provide potential complementary benefits to investors by utilizing futures products of Bitcoin and gold, offering a more stable investment path.
STKD Bitcoin & Gold ETF is an actively managed exchange-traded fund (ETF) that aims to provide investors with the opportunity to invest in both Bitcoin and gold through listed futures contracts and exchange-traded products (ETPs) in the United States. The ETF will invest in these two complementary asset classes, namely Bitcoin, also known as “digital gold,” and gold, considered a safe-haven asset. The ETF aims to reduce the impact of short-term market volatility on overall investment results by blending these two almost unrelated assets, thereby providing more stable investment returns. The specific workings of the ETF are as follows:
However, it is worth noting that the ETF utilizes leverage tools and does not directly invest in physical Bitcoin or gold. The document also indicates that the expected listing date for the ETF is September 9th, 2024. However, the U.S. regulatory agencies, SEC and CFTC, have not yet provided their assessment, and details regarding the ETF’s code and associated fees have not been disclosed.
In terms of performance, the largest gold ETF globally is the SPDR Gold Trust (GLD), which has increased by 14.4% year-to-date and has a market value of $62.7 billion.
The Bitcoin spot ETF that received SEC approval for listing in January this year, managed by BlackRock, has the largest scale in the asset management industry, with a market value of $18.8 billion and a 31% increase year-to-date.
Overall, both have shown some similarities in their performance this year. If the STKD Bitcoin & Gold ETF can successfully list, it remains to be seen whether this mixed investment portfolio of Bitcoin + gold can bring better returns to investors. It is worth our continued attention.
Related reading:
Is gold really a safe-haven asset? Annualized volatility is even higher than U.S. stocks, and mistiming can still lead to losses.
Related reading:
Is Bitcoin really a safe-haven asset? Did BTC outperform gold and the S&P 500 in the past three wars?
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