A New ETF that Offers 100% Leveraged Exposure Pairs Bitcoin with Gold.

• An ETF that aims to provide investors with exposure to both Bitcoin and Gold simultaneously has been filed, according to the most recent report.
• The blending of low-correlation assets is intended to mitigate short-term price fluctuations, as indicated in the preliminary SEC prospectus.

A recently filed proposal is an Exchange-Traded Fund (ETF) that aims to introduce investors and traders to Bitcoin (BTC) and gold. The STKD Bitcoin&Gold ETF, which Tidal Investments and Quantify Chaos Advisors plan to jointly develop, would offer simultaneous exposure to the performance of Bitcoin and Gold through futures and ETFs, according to a document we have access to. Furthermore, cash and cash equivalents, reverse repurchase agreements, and underlying funds with exposure to gold and bitcoin would be the main investments made by the ETF.
Gold and Bitcoin combine in a recently filed exchange-traded fund (ETF) that gives 100% exposure to both through leverage. Look it over: [t.co/LaQp8uuchm,]— June 27, 2024, Eric Balchunas (@EricBalchunas)
Preliminary SEC prospectus also states that the Fund can lessen the effect of short-term volatility on total investment return by combining assets with low correlations. The ETF would neither actively invest in Bitcoin or seek to get direct exposure to its current spot price, according to our assessment. In order to "stack" the total profits on investments made in its gold and bitcoin strategies, the Fund would also employ leverage.

Basically, investing one dollar in the fund gives you exposure to about one dollar of the fund's Bitcoin strategy and another $1 or so to its gold strategy. Therefore, the returns of the Bitcoin strategy (less the financing cost) are essentially layered on top of the returns of the Gold approach. The underlying asset classes may be directly exposed to the underlying funds, or they may be indirectly exposed through the use of derivatives like futures contracts.

Further Details Regarding the ETF for Bitcoin and Gold

According to the document, investors who contribute $1 to the Fund will receive $1 in return, with the amount of their investment being tracked by the Fund's Bitcoin strategy. This suggests that it would act in a manner akin to that of the price of Bitcoin. If Gold's strategy performed as planned, the identical action would be taken. In essence, a single dollar invested in two distinct investing techniques could result in a profit or a loss.

The Fund's investment strategy is predicated on the idea that, given their historically low correlation—that is, the lack of a strong historical relationship between their price movements—investing in both the Bitcoin and the Gold strategies may offer complimentary advantages. The Fund seeks to lessen the effect of transient market swings on the total return on investment by combining assets with low correlation, thereby yielding a more steady investment trajectory.

The stacking ETF's effective date is September 9, 2024, according to the petition. But there isn't a stock ticker or any related costs.


With a market value of $62 billion, SPDR Gold Trust (GLD), the largest gold ETF by market capitalization, gains 12.7% this year while this ground-breaking project awaits approval. With a market valuation of $116 billion and an 8.2% year-to-date gain, BlackRock's IBIT, which made its debut in January of this year, is also the market leader in the Bitcoin ETF space.
As of the time of writing, Bitcoin was up 0.87% over the previous day to trade at $61,276.