Quantify Funds and Tidal Investments submitted a prospectus to the U.S. SEC on June 26th for the STKD Bitcoin & Gold ETF, a mixed ETF involving Bitcoin and gold. The purpose 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, as an active Exchange-Traded Fund (ETF), aims to provide investors with the opportunity to invest in both Bitcoin and gold through listed futures contracts in the U.S. and Exchange-Traded Products (ETPs) and other investment tools.
This ETF will invest in two complementary asset classes, namely Bitcoin, often referred to as “digital gold,” and gold, considered a hedging asset. By blending these two nearly unrelated assets, the ETF aims to reduce the impact of short-term market volatility on overall investment outcomes, thereby offering a more stable investment yield. It is important to note that the ETF utilizes leverage tools and does not directly invest in physical Bitcoin or gold.
The prospectus indicates a planned listing date of September 9, 2024 for the ETF; however, regulatory agencies like the SEC and CFTC have not yet provided their review opinions, and details regarding the ETF code and associated fees have not been disclosed.
In terms of performance comparison, the largest gold ETF by global market value currently is the SPDR Gold Trust (GLD), which has risen by 14.4% this year with a market value of $62.7 billion. On the other hand, the Bitcoin spot ETF approved for listing in January this year has seen a 31% rise in value, being the largest within BlackRock’s current asset management scale at $18.8 billion.
Overall, the performance of these two assets shows some similarities this year. Whether the mixed investment portfolio of Bitcoin + gold in the STKD Bitcoin & Gold ETF can bring better returns to investors is something worth monitoring.
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