Faced with escalating geopolitical tensions and economic uncertainty, investors are looking for solutions to protect themselves against inflation. It is in this context that Quantity Funds is launching an innovative new ETF combining 100% Bitcoin and 100% gold, 2 assets recognized for their anti-inflation properties.
Bitcoin and gold to protect against the degradation of fiat currencies
In recent years, geopolitical tensions have continued to grow. Whether it is Ukraine, Taiwan or the Middle East, uncertainty weighs on international relations and stability in these regions. This impacts financial markets, prompting investors to seek ways to protect themselves against escalating conflict.
Recently, 2 assets have particularly stood out: gold, which has increased by 65% since the end of 2022, going from $1,640 to a new all-time high of $2,700 reached recently, and Bitcoin, which has jumped 330%. over the same period, going from less than $16,000 to $68,000, just 8% of its all-time high.
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These trends can be explained by the fact that gold and Bitcoin possess anti-fragility and inflation resistance characteristics.
Quantity Funds understands this and has partnered with returnstackedetfs.com, co-owned by Newfound Research and Resolve Asset Management SEZC. Together they launched Stacked, a licensed brand that refers to the idea of stacking 2 investments.
Recently, Quantity Funds introduced the STKD Bitcoin & Gold ETF (BTGD)a product allowing investors to gain simultaneous exposure to these 2 assets, thus offering protection against inflation and monetary policy uncertainties.
BTGD combines Bitcoin futures and ETPs with gold futures and ETPs, providing full exposure to both assets. For every dollar invested, holders get both $1 of exposure to Bitcoin and $1 to gold.
However, it is important to note that these financial products (ETFs, futures) do not provide the unique benefits of censorship resistance, decentralization, and peer-to-peer transactionswhich real Bitcoin and physical gold allow.
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The success of Bitcoin and gold ETFs
Gold-based ETFs are among the most efficient and capitalized in traditional finance, with more than $210 billion in assets under management globally, including $150 billion in the United States alone. Their success lies in the ease with which they allow investors to hold and trade gold, relying on third parties.
However, a major challenge of these ETFs is the inability to audit the underlying physical gold reserves, which raises doubts about the actual quantity of gold held compared to the “paper” gold issued. This contrasts with Bitcoin, whose transactions and addresses are fully traceable via its blockchain, ensuring increased transparency for holders..
📰 Also read in the news – In less than a year, spot Bitcoin ETFs exceed $20 billion in net inflows
Spot Bitcoin ETFs, launched in January 2024, have had one of the most impressive starts in ETF history. They have accumulated over $20 billion in net inflow volumes, with a total of $64 billion in assets under management, representing approximately 945,000 BTC.
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Source: BusinessWire
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First attracted by the lure of gain, I am now trapped deep into the rabbit hole. With no way out, I just have to share my knowledge and convey the passion I have for Bitcoin. I am also the creator of Adopt a Block, an educational site dedicated to Bitcoin.
Marius Farashi Tasooji
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