Wall Street Combines Bitcoin and Gold
London: 28 June 2024 (TraderMade): Wall Street is introducing three innovative ETFs that blend digital assets like Bitcoin and Ethereum with physical gold. These new products aim to offer investors stable and diverse investment opportunities.
By leveraging various strategies, the ETFs provide indirect exposure to these assets, enhancing portfolio diversification.
Key Takeaways
- Three new ETFs offer access to Bitcoin, Gold, and Ethereum.
- ETFs aim to provide stable investments by blending different strategies.
Stacked Bitcoin and Gold ETF
Tidal Investments and Quantify Chaos Advisors have filed for an ETF providing indirect exposure to Bitcoin and Gold. This ETF will invest in Bitcoin futures, gold futures, cash, reverse purchase agreements, and other Bitcoin or Gold-related ETFs.
It aims to blend Bitcoin and Gold strategies for stable investment opportunities, minimizing short-term market fluctuations.
ETF's Strategy
The fund employs leverage to combine the total returns of its Bitcoin and Gold strategies. Essentially, each dollar invested in the fund offers about one dollar's worth of exposure to both the Bitcoin and Gold strategies.
MicroStrategy ETF
T-Rex Group, a prominent ETF issuer, has applied for funds offering 2X Long and inverted leveraged positions to MicroStrategy. Bloomberg's senior ETF analyst Eric Balchunas noted the funds' high volatility.
The Fund avoids direct investment in ETH or derivatives tracking ETH performance.
It does not seek direct exposure to ETH's spot or cash price. These new ETFs offer innovative ways for investors to access and benefit from digital and physical assets.
Conclusion
These innovative ETFs provide diverse investment opportunities, blending digital and physical assets for potentially stable returns. Investors can now access Bitcoin, Gold, and Ethereum in a more structured and managed manner.
