New ETF Proposal Aims to Merge Bitcoin and Gold

CoinJ网报道：
A new ETF (Exchange Traded Fund) proposal for STKD Bitcoin and Gold ETF has been submitted to the U.S. Securities and Exchange Commission. The ETF aims to provide exposure to both BTC and gold. Customers can own both assets without actually owning either one of them. The filing was submitted by Tidal Investments and Quantify Chaos Advisors.
Also read: Goldman Sachs calls Bitcoin ETF approval a “psychological turning point”
In January, the U.S. Securities and Exchange Commission approved 11 BTC ETFs, which was considered a milestone moment in the cryptocurrency space. On the other hand, gold ETFs have been around for a while. However, an ETF combining BTC and gold has yet to appear.
Why does Tidal want to combine Bitcoin and gold?
Source: Bitcoin News
By combining BTC and gold, Tidal aims to provide the complementary advantages of both. The filing states, “By blending assets that have low correlation, the fund seeks to reduce the impact of short-term market volatility on the overall investment outcome, potentially providing a more stable investment trajectory.”
The filing continues, “The fund employs leverage to ‘stack’ the total return of the fund’s Bitcoin strategy with the total return of the fund’s gold strategy. Essentially, one dollar invested in the fund would provide approximately one dollar of exposure to the fund’s Bitcoin strategy and approximately one dollar of exposure to the fund’s gold strategy.”
Also read: Gold and Bitcoin: Dual currency rivals set to weaken the US dollar?
The fund also plans to allocate 10% to 65% of its net assets to U.S. Treasury bonds, money market funds, cash, and cash equivalents.
The U.S. Securities and Exchange Commission may approve the combination of BTC and gold ETFs. Earlier this year, the regulatory body approved BTC ETFs, and gold ETFs are already a thing. Therefore, the merged ETF may not face much opposition.