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    STKD launches Bitcoin and gold ETF as ‘debasement trade’ gains traction

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    STKD, known as Stacked, has launched a Bitcoin and gold-focused exchange-traded fund (ETF) in response to debasement trade fears ahead of the US presidential elections. The Bitcoin & Gold ETF aims to shield investors from potential future inflation and currency debasement. The actively managed fund offers $1 of exposure to Bitcoin and gold for every $1 put in by investors. It will hold a mix of other ETFs and futures tied to these asset prices. The launch is among a series of cryptocurrency-holding ETF proposals that have been announced recently.

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    The company Stacked, also known as STKD, has just launched a new exchange-traded fund (ETF) that’s focused on Bitcoin and gold. This is in response to investors who are expecting an economic drop, also known as the “debasement trade”, because of the upcoming U.S. presidential elections in November.

    On October 16, STKD announced they were launching their Bitcoin & Gold ETF (BTGD). Its goal is to give investors the chance to put their money into two assets that are rare and could possibly protect against future inflation and currency debasement.

    The ETF is actively managed and is designed to give $1 of exposure to both Bitcoin and gold for every $1 that investors put into the fund. The fund is going to hold a mix of other ETFs and futures that are tied to the price of Bitcoin and gold.

    Futures contracts are just agreements to buy or sell something at a specific price in the future.

    Many investors are choosing to invest in Bitcoin and gold as they prepare for a possible “catastrophic scenario” due to increasing geopolitical tensions, per a report by JPMorgan on October 3.

    This report said, “Rising geopolitical tensions and the upcoming U.S. election are likely to increase the ‘debasement trade’, which favors both gold and Bitcoin.” This term is associated with a surge in gold demand because of things like geopolitical uncertainty, concerns about inflation, and high government deficits, among other things.

    Meanwhile, STKD’s launch of their new product comes among a growing number of proposed ETFs that hold cryptocurrencies, which is definitely timely with the U.S. presidential election coming soon.

    In October, Canary Capital announced plans to launch ETFs that will hold XRP and Litecoin. Bitwise also has plans to launch an XRP ETF.

    Meanwhile, leveraged ETFs ran by MicroStrategy have broken the $400 million mark in terms of net assets as more retail investors are looking to invest in extremely volatile Bitcoin options, according to data from Bloomberg Intelligence. Just so you know, leveraged ETFs carry extra risk and often underperform because of the costs of daily rebalances to keep a leverage target.

    Source: Cointelegraph

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