The new ETF proposal has been submitted to the US SEC for The STKD Bitcoin & Gold ETF. This ETF is designed to provide exposure to BTC as well as gold. Both assets can be accessed by clients without them having to own either. Tidal Investments, Quantify Chaos Advisors filed this 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 a while, they are not as popular. Yet, an ETF combining both BTC and Gold is still to come.
Why would Tidal combine Bitcoin and Gold?
Tidal hopes to offer complementary benefits by combining BTC with gold. According to the filing, ‘The Fund’s goal is to minimize the effect of market volatility on overall performance by blending low-correlation assets. This could lead to a more consistent investment path.‘
The filing continues, ‘Leverage is used by the Fund to leverage its assets. “stack” The total returns on holdings of the Fund’s Bitcoin strategy, along with total returns from holdings of the Fund’s Gold strategy. One dollar invested into the Fund gives approximately one-dollar exposure to its Bitcoin strategy, and about one-dollar exposure to Fund’s Gold Strategy.‘
Also Read: Gold & Bitcoin: Dual Currency Contenders To Bring Down The US Dollar?
Funds also aim to invest between 10% and 65% of their net assets into US Treasury Bills, Money Market Funds, Cash, or cash equivalents.
The SEC could approve the BTC-gold ETF combination. BTC ETFs were approved by the regulator earlier in this year and there are gold ETFs already. A combined ETF is unlikely to face opposition.
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Source: watcher.guru