(Kitco News) – The launch of spot Bitcoin (BTC) exchange-traded funds (ETFs) in the U.S. heralded a new age of legitimacy for digital assets, and with central banks around the world debasing their currencies en masse in a bid to stave off recession, it was only a matter of time before BTC was paired with gold to offer protection against the ongoing loss of purchasing power.
Quantify Funds has announced the launch of the STKD Bitcoin & Gold (BTGD), a new ETF that offers exposure to both BTC and gold in one investment product.
“Through the combination of a digital currency (Bitcoin) and a physical currency (gold) in a single vehicle – the STKD Bitcoin & Gold ETF (BTGD), launching today – investors now have the opportunity to invest in two scarcity assets that may protect against future inflation and currency debasement,” Quantify Funds said in a press release.
While other products on the market offer exposure to both assets, the firm noted that “BTGD is unique in that for every $1 invested, the Fund seeks to provide 100% of exposure to its Bitcoin strategy and 100% of exposure to its gold strategy.”
“The Bitcoin strategy seeks to capture the price return of Bitcoin, investing in Bitcoin futures and ETPs, while the gold strategy similarly seeks to capture the price return of gold via investments in gold futures and gold ETPs.”
While the fund offers exposure to the two ‘safe-haven’ assets, it’s worth noting that the most die-hard crypto and precious metals fans may opt for a different investment avenue as BTGD does not offer direct exposure to either asset.
“The Fund does not invest directly in Bitcoin or any other digital assets,” the release said. “The Fund does not invest in or seek direct exposure to the current ‘spot’ or cash price of Bitcoin. The Fund does not invest directly in gold or gold bullion. Investors seeking direct exposure to the price of bitcoin [or gold] should consider an investment other than the Fund.”
STKD, which is short for Stacked, is a licensed brand in partnership with returnstackedetfs.com, which is co-owned by Newfound Research and Resolve Asset Management SEZC.
The fund specializes in “access to two assets simultaneously, stacked on top of each other with a common investable theme that displays positive diversification benefits,” the release said. “STKD is a new twist on portable alpha, which refers to the approach of stacking two investments on top of each other, allowing for the potential of excess returns and helping investors better unlock sources of diversification for their portfolio.”
After highlighting that Bitcoin has been referred to as “‘a digital currency,’ ‘a speculative asset,’ and as ‘a store of value’” since it emerged more than a decade ago as “one of the most consequential financial developments of the 21st century,” Quantify Funds noted that “one of the more heavily debated narratives has been that of ‘bitcoin vs. gold’ when it comes to building a broader multi-asset portfolio.”
“But a discussion built on ‘versus’ misses the larger role that both assets can play for those investors looking for a mix of capital appreciation and portfolio hedging,” they said. With a focus on bringing “institutional-quality investment strategies to the broader marketplace,” they said, “BTGD is actively managed and is the first ETF to bring Bitcoin and gold together in a ‘stacked’ approach, achieving more than $1 of exposure for every $1 invested.”
“We’re very pleased to be partnering with returnstackedetfs.com, Corey Hoffstein, Mike Philbrick, Rodrigo Gordillo, and Adam Butler and their teams to bring this strategy to market in an ETF wrapper for the very first time,” said David Dziekanski, CEO of Quantify Funds. “We’re thrilled to be bringing this new fund to market and are very excited to connect with advisors, institutions, and others to educate them about the role stacked exposure to bitcoin and gold can play in a well-constructed, capital-efficient portfolio.”
According to the Quantify Funds website, the ETF will be managed by Tidal Trust II and “offers investors a way to diversify their portfolios by holding both digital and traditional assets, aiming for potential growth from Bitcoin’s volatility while hedging with the relative stability of gold.”
“By combining a digital and physical currency into a single investment vehicle, we have optimally designed a product to help protect against obstacles such as currency devaluation or inflation,” they said, noting its key features include a “Dual asset strategy, diversification, and active management.”
“The fund primarily invests to potentially capture the price return of bitcoin and gold, aiming to balance the high volatility of cryptocurrencies with the historical store-of-value characteristics of gold,” the website said. “The fund offers an opportunity to invest in both alternative (crypto) and traditional (precious metals) assets, which could appeal to investors seeking portfolio diversification. The fund may actively manage its allocation between Bitcoin and gold to optimize returns and manage risk.”
