Asset manager Quantify Funds has launched the STKD Bitcoin & Gold ETF (BTGD), an innovative fund designed to provide investors with 100% exposure to both bitcoin and gold within a single investment vehicle. This actively managed ETF achieves dual asset exposure through bitcoin/gold futures contracts and related exchange-traded products, leveraging each $1 invested to target $1 in bitcoin and $1 in gold.
How BTGD Works
- Leveraged Strategy: Uses financial derivatives to amplify exposure (1:1 ratio per asset).
- Holdings: Indirect investments via futures/ETPs—does not physically hold bitcoin or gold.
- Rebalancing: Portfolio managers adjust allocations monthly to maintain equilibrium.
👉 Discover how dual-asset ETFs diversify your portfolio
Key Features
| Aspect | Detail |
|----------------------|-----------------------------------------|
| Expense Ratio | 1% |
| Advisor | Tidal Investments |
| Sub-Advisor | Quantify Chaos Advisors |
| Risk Profile | Non-diversified, high volatility |
Why Bitcoin and Gold?
- Bitcoin: Up ~50% YTD, recently surged past $68k (July 2024 highs).
- Gold: Record highs in 2024, +27% YTD performance.
- Market Demand: Reflects investor appetite post-success of spot bitcoin ETFs.
Risks to Consider
- Volatility: Both assets experience significant price swings.
- Regulatory Uncertainty: Crypto policies remain fluid globally.
- Concentration Risk: Non-diversified structure heightens vulnerability.
👉 Learn about hedging strategies with Bitcoin and Gold
FAQ Section
1. How does BTGD achieve 100% exposure to both assets?
The fund employs leverage through futures and ETPs, effectively doubling each dollar invested—$100 in assets targets $100 in bitcoin and $100 in gold.
2. What are the primary risks?
Price volatility, regulatory changes, and platform security risks dominate. The fund’s concentrated nature may intensify losses.
3. How often is the portfolio rebalanced?
Holdings are adjusted at least monthly to maintain the bitcoin-gold balance.
4. Does BTGD directly hold bitcoin or gold?
No. It gains exposure via derivatives and ETPs.
5. Who manages the fund?
Tidal Investments (advisor) and Quantify Chaos Advisors (sub-advisor).
Conclusion
BTGD offers a streamlined way to capitalize on two high-performing assets—bitcoin’s digital growth and gold’s traditional safe-haven appeal. While the leveraged strategy enhances potential returns, investors must weigh the inherent risks.