New combined investment proposal
Key facts:
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The SEC must decide whether or not to approve this financial instrument.
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With this ETF, the aim is to reduce the impact of short-term market fluctuations.
A proposed new exchange-traded fund (ETF) is positioned as a potential inflow of capital for investors into gold and bitcoin (BTC). It is called STKD Bitcoin & Gold ETF.
The investment company Tidal Investments and Quantify Chaos Advisors submitted an application to the SEC, the US securities regulator, to launch this fund. The mission of this is provide simultaneous exposure to gold and bitcoin performance through futures and ETFs of these assets.
This initiative takes place almost six months after the debut of spot bitcoin ETFs in the US market, instruments that, as CriptoNoticias reported, already accumulate more than 14 billion dollars (USD).
Due to the low correlation that gold and bitcoin have at times, the ETF seeks to generate profits by taking advantage of its different price trendsIn this way, it hopes to reduce investment risk.
“By combining 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,” he explained.
Bitcoin had a better year than gold
The price of gold, currently around USD 2,300, reached a new all-time high at USD 2,400 a month ago. In this way, it has shown a sustained rise, while bitcoin has continued lateralizing since March in a range below the new record it set at that time of USD 73,700.
However, as can be seen in the graph, Bitcoin stands out so far in 2024 for registering greater gains than gold (45% vs. 13%).
The deadline for the SEC to evaluate whether to approve the proposed new ETF, which at the moment does not have a defined stock code (ticker), is September 8th.
