The new ETF proposal has been submitted to the US SEC for The STKD Bitcoin & Gold ETF. The ETF will provide exposure to BTC and to gold. Both assets can be accessed by clients without them having to own either. Tidal Investments & Quantify Chaos Advisors have filed the filing.
Also Read: Goldman Sachs Calls Bitcoin ETF Approval a ‘Psychological Turning Point’
In January, the SEC granted approval to 11 BTC-based ETFs. This is considered an important moment for crypto. While gold ETFs have existed for quite some time, they are not as popular. A BTC-gold ETF is still a long way off.
Why is Tidal combining Bitcoin with gold?
Tidal’s goal is to combine BTC and Gold in order to maximize the benefits that both can provide. According to the filing, ‘Funds that blend assets with low correlation aim to lessen the impact of fluctuations in the short term on their overall outcome. They can also provide a more stable investing trajectory.‘
The filing continues, ‘Leverage is used by the Fund to leverage its assets. “stack” The total return on holdings of the Fund’s Bitcoin strategy, along with total returns from holdings of the Fund’s Gold strategy. A dollar invested in the Fund will provide approximately one dollars of exposure for the Fund’s Bitcoin strategy as well as approximately one dollar to the Fund’s Gold strategy.‘
Also Read: Gold & Bitcoin: Dual Currency Contenders To Bring Down The US Dollar?
The fund will also invest 10 to 65 percent of its assets net in US Treasury bonds, money-market funds, and cash or cash equivalents.
It is possible that the SEC would approve this BTC/gold ETF. BTC ETFs were approved by the regulator earlier in this year and there are gold ETFs already. Hence, an ETF that combines both BTC and gold may not encounter much resistance.
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Source: watcher.guru
