By Stacked, a fund issuer commonly referred to as STKD, has introduced a new exchange-traded fund (ETF) designed to offer leveraged exposure to Bitcoin (BTC) and gold, responding to growing investor interest in assets considered to hedge against inflation and currency devaluation.
Launched on October 16, the STKD Bitcoin & Gold ETF (BTGD) seeks to attract those preparing for potential economic turbulence ahead of the United States presidential election in November.
Investors are increasingly turning to BTC and gold in anticipation of challenging economic conditions, characterized by persistent inflation and geopolitical uncertainty.
An October 3 report by JPMorgan highlighted that rising tensions worldwide and the upcoming US election have reinforced the trend known as the “debasement trade.”
The term “debasement trade” describes the increased demand for assets like gold, driven by several factors, including ongoing geopolitical risks since 2022, worries about long-term inflation, and concerns over high government deficits in major economies.
The STKD Bitcoin & Gold (BTGD) ETF
The BTGD fund aims to provide investors with equal exposure to Bitcoin and gold, with each dollar invested translating to $1 worth of exposure to each asset.
This strategy leverages a combination of other ETFs and futures contracts linked to the price of both Bitcoin and gold.
Futures contracts, standardized agreements to buy or sell an asset at a future date, allow the fund to adapt to market movements and deliver its dual-asset exposure goal.
By launching the BTGD fund, STKD aims to cater to those seeking an effective blend of portfolio growth and risk management.
While the “Bitcoin vs. gold” debate has long attracted attention, the firm emphasizes that both assets serve complementary roles in protecting against economic risks rather than competing directly.
According to STKD, this combined approach can benefit investors who want to hedge against future economic uncertainties while still pursuing potential capital appreciation.
The ETF’s debut occurs against a backdrop of increased interest in cryptocurrency-related ETFs, particularly as the US presidential election draws near.
Several asset managers have recently proposed new products, including Canary Capital’s plans to introduce ETFs for XRP and Litecoin.
Similarly, Bitwise has announced its intention to launch an ETF focused on XRP.
Meanwhile, leveraged Bitcoin-focused ETFs, such as those tied to MicroStrategy, have gained traction among retail investors, surpassing $400 million in net assets this month, according to data from Bloomberg Intelligence.
The appeal of these high-risk, high-reward investment vehicles suggests a growing appetite for exposure to the volatile cryptocurrency market.
With the launch of BTGD, STKD positions itself at the intersection of traditional and digital assets, aiming to provide investors with a dynamic tool for navigating an evolving economic landscape.
The fund’s innovative structure reflects a growing trend toward blending asset classes to offer diversified strategies amid shifting market conditions.
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