New STKD ETF Offers Bold Bet on Bitcoin and Gold as US Election Looms

Stacked (STKD) has introduced a new exchange-traded fund (ETF) offering leveraged exposure to both Bitcoin (BTC) and gold.

According to a statement, the STKD Bitcoin & Gold ETF (BTGD) was launched on Wednesday. It provides investors with a combined investment in these two assets, which are increasingly viewed as protection against inflation and currency debasement.

The ETF is structured to give investors 100% exposure to both Bitcoin and a gold portfolio for each dollar invested in the fund. This is achieved through a mix of Bitcoin and gold futures, as well as ETFs tracking their respective prices. According to STKD, this ETF provides investors the opportunity to hold both assets simultaneously, offering potential benefits from capital appreciation and portfolio hedging.

The statement revealed: “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.”

This is wild, the 2x $MSTR ETF was launched a week ago and already has $72m in aum (for context that puts in top 20% of the 515 ETFs launched this year) despite the 1.75x $MSTR ETF having head start and $357m (top 8% of new launches). Both have robust liquidity too. I didn't… pic.twitter.com/t46B8UIBhm
— Eric Balchunas (@EricBalchunas) September 27, 2024

A report from JPMorgan noted that rising geopolitical tensions and the upcoming U.S. elections are contributing to increased demand for Bitcoin and gold. The report suggests that “rising geopolitical tensions and the coming [U.S.] election are likely to reinforce the ‘debasement trade,’ thus favoring both gold and Bitcoin.” The debasement trade refers to a surge in demand for alternative assets due to concerns about persistent inflation, government deficits, and economic uncertainty.

STKD stated that the launch of the BTGD ETF addresses the ongoing debate between Bitcoin and gold. “One of the more heavily debated narratives has been that of ‘Bitcoin vs. gold,'” STKD explained. “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.”

The ETF does not directly invest in Bitcoin or gold but instead uses Bitcoin and gold futures contracts. Retail investors have increasingly turned to leveraged ETFs, and data from Bloomberg Intelligence showed that leveraged MicroStrategy ETFs have surpassed $400 million in net assets, signaling strong interest in volatile Bitcoin-based investments.

STKD’s ETF joins a growing list of proposed cryptocurrency ETFs, including upcoming offerings focused on XRP and Litecoin from other asset managers.

Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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