A new ETF proposal (exchange-traded fund) aims to revolutionize the investment market by combining Bitcoin and gold.
Filed with the US SEC by Tidal Investments and Quantify Chaos Advisors, the STKD Bitcoin & Gold ETF aims to offer investors exposure to both assets without the need to directly own either one.
This initiative could represent a significant opportunity for those looking to diversify their portfolio with the safety of gold and the growth potential of Bitcoin. Let’s see all the details below.
New ETF: an innovative combination of Bitcoin and gold
As anticipated, a revolutionary exchange-traded fund (ETF) proposal has been submitted to the US SEC for the STKD Bitcoin & Gold ETF. This new ETF aims to give investors simultaneous exposure to both Bitcoin (BTC) che all’oro.
Investors can thus benefit from both assets without having to directly own one of them.
In January, the SEC has already approved 11 Bitcoin-based ETFs, marking a crucial moment in the cryptocurrency landscape. While gold ETFs have been around for a while, an ETF that combines both BTC and gold is a new development.
By combining BTC and gold, Tidal Investments intends to offer the complementary benefits of both assets. According to the filing presented, in fact:
“By combining low-correlation assets, the Fund aims to reduce the impact of short-term market fluctuations on the overall investment result, potentially providing a more stable investment trajectory.”
The document goes on to explain the following:
“The Fund uses leverage to ‘stack’ the total returns of holdings in the Fund’s Bitcoin strategy alongside the total returns of holdings in the Fund’s Gold strategy. In essence, 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.”
Furthermore, the fund aims to invest from 10% al 65% of net assets in U.S. Treasury bills, money market funds, cash and cash equivalents.
Future Prospects and SEC Approval
There is a concrete possibility that the SEC approves this combination of BTC and gold ETFs. The regulator has already shown openness by approving BTC ETFs earlier this year, and gold ETFs are already established.
As a result, an ETF that combines both assets may not face much opposition.
If approved, the STKD Bitcoin & Gold ETF would represent a major innovation for investors seeking a solid, well-balanced diversification strategy.
Progress After Historic Approvals of Bitcoin and Ethereum ETFs
VanEck’s head of research, Mathew Siegelsaid the market could soon see the arrival of a Solana ETF, following the recent approvals of Bitcoin and Ethereum spot ETFs.
Asset management firm VanEck has in fact introduced the first Solana ETF (SOL) in the United States, paving the way for this new financial instrument that would offer institutional investors exposure to Solana.
Siegel explained that the language used in the forms ETF 19b4 for Ethereum, which describes Ethereum as a commodity due to its decentralized characteristics, could also be applied to Solana.
He said that if exchanges are willing to sign the same surveillance-sharing agreements for Solana that they did for spot Bitcoin and Ethereum ETFs, it could help drive approval for a SOL ETF.
Additionally, Siegel noted that there are commodity ETFs that do not have a futures market, suggesting that this could be a loophole for approving a Solana ETF.
Unlike SOL, both BTC and ETH have futures markets on Chicago Mercantile Exchange (CME).
Siegel’s interview preceded VanEck’s decision to officially apply for the first Solana ETF in the United States on Thursday.
The asset manager, based in New York, presented the S-1 Registration Form to the U.S. Securities and Exchange Commission (SEC), marking an important milestone in the approval process.
In September 2023, VanEck submitted a new Ethereum ETF application, joining the recent wave of applications alongside big names like BlackRock e Fidelity.
There is therefore a general expectation that these products will be available in early July and VanEck has already waived fees until 2025 pre-approval.
