A new ETF (exchange-traded fund) proposal has been submitted to the US SEC for the STKD Bitcoin & Gold ETF. The ETF aims to provide exposure to both BTC and gold. Customers can take advantage of both assets without actually owning either one. The filing was filed by Tidal Investments and Quantify Chaos Advisors.
The SEC approved 11 BTC ETFs in January, which is now considered a monumental moment in the crypto landscape. Gold ETFs, on the other hand, have been around for a while. But an ETF that combines both BTC and gold has yet to be seen.
Why does Tidal want to combine Bitcoin and gold?
By combining BTC and gold, Tidal aims to provide the complementary benefits of both. According to the filing, ‘By combining assets with low correlation, the Fund aims to reduce the impact of short-term market fluctuations on overall investment results, potentially resulting in a more stable investment trajectory.’
The filing continues, ‘The Fund uses leverage to “stack” the total returns held in the Fund’s Bitcoin strategy with the total returns held in the Fund’s Gold strategy. Essentially, one dollar invested in the Fund provides approximately one dollar of exposure to the Fund’s Bitcoin strategy and approximately one dollar of exposure to the Fund’s Gold strategy.’
The Fund also aims to invest 10% to 65% of its net assets in U.S. Treasury bills, money market funds, and cash and cash equivalents.
It is likely that the SEC will approve this combination of BTC and gold ETFs. The regulator approved BTC ETFs earlier this year and gold ETFs are already in the pipeline. Therefore, the combined ETF may not face much opposition.
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