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?

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.