New ETF Proposal Aims To Combine Bitcoin and Gold

A new ETF (exchange-traded fund) proposal has been submitted to the US SEC for The STKD Bitcoin & Gold ETF. The ETF aims to offer exposure to both BTC and GOLD. Clients can have the advantage of both assets without actually owning either one of them. The filing has been submitted by Tidal Investments and Quantify Chaos Advisors.

Also Read: Goldman Sachs Calls Bitcoin ETF Approval a ‘Psychological Turning Point’

The SEC approved 11 BTC ETFs in January in what is now considered a monumental moment in the crypto landscape. Gold ETFs, on the other hand, have been around for some time. But an ETF that combines both BTC and GOLD is yet to be seen.

Why does Tidal want to combine Bitcoin and gold?

Gold and Bitcoin
Source: Bitcoin News

By combining BTC and GOLD, Tidal aims to provide complementary benefits of both. According to the filing, ‘By blending assets with low correlation, the Fund aims to reduce the impact of short-term market fluctuations on the overall investment outcome, potentially providing a more stable investment trajectory.‘

The filing continues, ‘The Fund uses leverage to “stack” the total return of holdings in the Fund’s Bitcoin strategy together with the total returns of holdings in the Fund’s Gold strategy. Essentially, one dollar invested in the Fund provides approximately one dollar of exposure to the Fund’s Bitcoin strategy and approximately one dollar of exposure to the Fund’s Gold strategy.‘

Also Read: Gold & Bitcoin: Dual Currency Contenders To Bring Down The US Dollar?

The fund also aims to invest 10% to 65% of its net assets in US Treasury bills, money market funds, cash and cash equivalents.

There is a possibility that the SEC will approve this BTC and GOLD ETF combo. The regulator already approved BTC ETFs earlier this year, and GOLD ETFs are already a thing. Hence, a combined ETF may not face much opposition.

  • bitcoin
  • GOLD

Comments

Post a Comment

Popular posts from this blog

Aave community proposes suspending Fantom-based integration

Image
The past month has seen a series of hacks in the crypto sector. The latest hack was on hardware wallets, where 15,000 Solana wallets were affected, resulting in a loss of around $4.6 million. Aave proposal removes Fantom integration One of the most persistent hacks in the crypto space is on DeFi bridges. Bridges are an essential infrastructure that allows users to transfer funds between blockchains. For example, the native assets on one network like Avalanche can exist on another like Harmony without needing a bridge. Given this large amount of money stolen from these blockchain bridges, one DeFi protocol is taking steps to lower the risks from the sector. A recent proposal on the Aave protocol suggested that the community suspends all Fantom-based integration. Buy Aave Now Your capital is at risk. The proposal from the Aave community says that halting Fantom integration would protect users by suspending the ability to deposit and borrow assets through the Aave V3 market...
Read more

Canadian crypto traders will have a harder time using leveraged bets

Image
Join Our Telegram channel to stay up to date on breaking news coverage Canadian umbrella financial regulator, the CSA (Canadian Securities Administrators) recently decided to create a new set of rules for crypto exchanges operating in the country, according to two unnamed sources familiar with the matter. Among the new changes is apparently the rule that all crypto trading platforms that wish to operate in the country must be registered, and everyone seeking registration must sign undertakings to comply with investor protections. The CSA (Canadian Securities Administrators) declined to reveal any details, saying it would do so "in the near future.” — DustyBC Crypto (@TheDustyBC) February 17, 2023 However, this is not the end of it, as the rules will also severely affect retail investors who wish to trade crypto currencies using leveraged bets. The CSA plan is to increase its oversight of crypto exchanges that operate in Canada. This will mean tighter rules whi...
Read more

Astar launches NFT campaign to celebrate mainnet launch

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only. Astar Network, a Polkadot parachain, has announced an NFT campaign to celebrate the mainnet release of Astar zkEVM, an Ethereum layer-2 chain powered by Polygon technology. Astar’s NFT campaign The Astar Network’s NFT campaign, scheduled for Q1 2024, aims to celebrate the launch of the Astar zkEVM mainnet, which was built utilizing the Polygon Chain Development Kit (CDK). The campaign draws inspiration from Astar Network’s Japanese roots by using the popular Japanese capsule machines and mechanisms to award random prizes. You might also like: Astar Network launches zKatana layer-2 scaling solution on public testnet To participate in this campaign , users are encouraged to explore the projects available on Astar zkEVM. The platform offers on-chain and off-chain quests, which users can complete to earn re...
Read more