What is the STKD Bitcoin & Gold ETF?
The STKD Bitcoin & Gold ETF (short for BTGD) is a new investment fund designed to protect investors from economic issues such as inflation and the “devaluation of money” (i.e., the decrease in purchasing power of currency). This ETF was proposed by a wealth management company called Quantity Funds in June and has now been launched in the market.
An ETF (Exchange-Traded Fund) is an investment vehicle that can be bought and sold on the stock exchange. This means you can buy and sell ETFs just like stocks. This new ETF offers investors the chance to invest in both bitcoin and gold simultaneously.
What Does This Mean for Investors?
BTGD provides investors with bitcoin and gold investments worth more than the amount invested for every dollar invested. In other words, you receive the full value of your money with this ETF, and even a bit more.
– Bitcoin Strategy: It aims to capture fluctuations in bitcoin prices. To do this, it invests in bitcoin futures and bitcoin ETPs (exchange-traded products).
– Gold Strategy: Similarly, it seeks to capture changes in gold prices. For this, it invests in gold futures and gold ETPs.
This allows investors to benefit from the price movements of both bitcoin and gold. However, be cautious! This ETF does not directly purchase bitcoin or gold; instead, it invests in price changes.
What is the Stacked Approach?
BTGD is pioneering a method called the “stacked approach.” With this method, it allows you to invest more in bitcoin and gold for every dollar you have. This means your money is “stacked” as investments in both bitcoin and gold, offering investors the potential for greater returns while making the same amount of investment.
The launch of the ETF comes just a few weeks before the upcoming U.S. presidential elections. This timing is significant because the economy can fluctuate during elections, and investors may seek safe havens like gold and bitcoin during such times.
So, Why Gold and Bitcoin?
Analysts at JPMorgan, a major financial institution, believe that interest in assets like bitcoin and gold may increase by 2025. Especially during periods of economic uncertainty, investors are turning to alternative assets like gold and bitcoin. This is referred to as the “debasement trade,” where people seek secure investment tools like gold and bitcoin to prevent their money from losing value.
According to JPMorgan, if Donald Trump is re-elected, this “debasement trade” could strengthen even further. The potential taxes and increased spending policies Trump might implement could trigger more investments in assets like bitcoin and gold.
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