Chaos

Gold

The world of Exchange-Traded Funds (ETFs) is about to get a wild new addition: a single product offering investors exposure to both Bitcoin and gold. This brainchild of Tidal Investments and Quantify Chaos Advisors, called the STKD <a href="https://www.benzinga.com/24/06/39541532/gold-and-digital-gold-combine-new-etf-proposal-seeks-to-merge-bitcoin-and-gold-investment-opportunit" target="_blank" rel="noopener nofollow">Bitcoin &amp; Gold ETF</a>, takes a novel approach by leveraging both assets for a potentially smoother ride in the often-choppy investment landscape. 
<h2 data-sourcepos="5:1-5:23" id="strong-marrying-opposites-a-100-leveraged-bet-on-diversification-strong">Marrying Opposites: A 100% Leveraged Bet On Diversification</h2> 
Traditionally, Bitcoin and gold have been seen as somewhat opposing forces in the investment world. Bitcoin, the volatile darling of the cryptocurrency scene, is known for its rapid price swings. 
Gold, on the other hand, is considered a safe-haven asset – or what most would say “God’s Currency” – often sought after during economic downturns due to its perceived stability. The<a href="https://www.econotimes.com/Quantify-Chaos-Files-ETF-to-Combine-Bitcoin-and-Gold-for-Unique-Investment-Strategy-1680472" target="_blank" rel="noopener nofollow"> STKD ETF</a> capitalizes on this very difference. 
By using leverage, the ETF aims to amplify the returns of both Bitcoin and gold through a combination of futures contracts and existing ETFs focused on each asset class. This “stacking” strategy, as the filing describes it, essentially ties the performance of both assets together within the ETF. 
<blockquote class="twitter-tweet"> 
 New stacked Bitcoin and gold ETF filed 
 STKD Bitcoin &amp; Gold ETF ticker and fees tba effective date: Sep 9, 2024 
 Using leverage, provides simultaneously exposure to performance of <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">#Bitcoin</a> and gold via bitcoin futures and ETFs, and gold futures and ETFs. 
 Investment Sub-Adviser… <a href="https://t.co/9GyOYuwqKv" rel="nofollow" target="_blank">pic.twitter.com/9GyOYuwqKv</a> 
 — ETF Hearsay by Henry Jim (@ETFhearsay) <a href="https://twitter.com/ETFhearsay/status/1806416570329055651?ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">June 27, 2024</a>
</blockquote> 
The underlying theory is that since Bitcoin and gold have historically exhibited low correlation – meaning their prices haven’t moved in tandem – the combined effect will be a more stable investment trajectory. 
<img loading="lazy" decoding="async" class="aligncenter size-full" src="https://www.tradingview.com/x/iKm8VtIf/" width="2475" height="1163"> 
<h2 data-sourcepos="13:1-13:54" id="strong-regulatory-hurdles-remain-strong">Regulatory Hurdles Remain</h2> 
The innovative design of the STKD ETF is certainly grabbing attention, but there are still hurdles to clear before it can hit the market. The most significant one is regulatory approval from the US Securities and Exchange Commission. The SEC has historically been cautious about approving Bitcoin ETFs, citing concerns about market manipulation and volatility. 
<blockquote class="twitter-tweet"> 
 Tidal Investments and Quantify Chaos’ ETF to offer dual exposure to BTC and gold 
 Investment firms Tidal Investments and Quantify Chaos Advisors recently filed for the STKD Bitcoin &amp; Gold ETF with the U.S. SEC on June 27, according to The Block. This ETF is designed to track the… 
 — CoinNess Global (@CoinnessGL) <a href="https://twitter.com/CoinnessGL/status/1806491823973740593?ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">June 28, 2024</a>
</blockquote> A Sign Of Maturing Markets? Bitcoin ETFs Gain Traction 
The STKD ETF proposal comes at a time when Bitcoin ETFs are experiencing a surge in popularity. Traditional spot Bitcoin ETFs, which track the price of Bitcoin directly, have seen significant inflows in recent weeks. This trend suggests a growing appetite among investors for regulated exposure to the cryptocurrency. 
The success of spot Bitcoin ETFs is paving the way for more innovative products like the STKD. It’s a sign that the cryptocurrency market is maturing and attracting interest from a wider range of investors. 
Featured image from TechLog360, chart from TradingView

The Future Is Now: New ETF Blends Gold And Crypto Investments

目錄

Bitcoinist

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