Gold

Fund issuer Stacked (STKD) has launched a new exchange-traded fund (ETF) that provides leveraged exposure to both Bitcoin (BTC) and gold, capitalizing on the growing “debasement trade” trend ahead of the U.S. presidential elections in November.
In an announcement on October 16, STKD introduced the Bitcoin &amp; Gold ETF (BTGD), designed to offer investors exposure to “two scarcity assets that may protect against future inflation and currency debasement.” The actively managed ETF aims to allocate $1 to Bitcoin and $1 to gold for every $1 invested, utilizing a mix of ETFs and futures contracts linked to the prices of BTC and gold.
Futures contracts are standardized agreements to buy or sell an asset at a specified date in the future, providing investors with exposure without directly holding the underlying asset.
According to an October 3 report by JPMorgan, investors are turning to both Bitcoin and gold as they brace for potential economic instability fueled by rising geopolitical tensions and the upcoming U.S. elections. JPMorgan’s report, shared with Cointelegraph, suggests that these factors reinforce the “debasement trade,” where demand for assets like gold and Bitcoin spikes due to fears of inflation, geopolitical uncertainty, and persistent government deficits.
The “debasement trade” refers to the growing demand for assets that are perceived to protect against inflation and the devaluation of fiat currencies.
<h3 class="wp-block-heading" id="a-strategic-blend-of-bitcoin-and-gold">A Strategic Blend of Bitcoin and Gold</h3>
STKD emphasized that while debates often pit Bitcoin against gold, the two assets together can serve as a strategic combination for investors seeking both capital appreciation and portfolio hedging.
The launch of STKD’s ETF comes as a wave of proposed cryptocurrency-related ETFs are emerging ahead of the U.S. presidential election. Asset manager Canary Capital has also announced plans for ETFs focused on XRP and Litecoin, while Bitwise plans to launch an XRP ETF. Additionally, leveraged MicroStrategy ETFs reached $400 million in net assets, driven by retail investor interest in volatile Bitcoin investments, according to Bloomberg Intelligence.
Leveraged ETFs carry additional risk and may underperform due to the costs associated with daily rebalancing to maintain their leverage targets.

STKD Launches New ETF With Leveraged Exposure to Bitcoin and Gold

Table of Contents

Crypto Intelligence

Other articles published on Oct 17, 2024

Gamers are worried that Trump will ban video games if he wins

Animoca Brands Plans to Buy Back WATCoins

SEC Shake-Up Ahead? Donalds Predicts Gensler’s Exit Under Trump

MAGA, STRUMP, TREMP rally amid increasing odds of a Trump victory

Bitcoin Suisse Launches EURC with No Custody Fees

Bitfinex hacker should get 5 years jail for 120K BTC heist: Feds

Join our free newsletter for daily crypto updates!