Originally published on: October 16, 2024
Cryptocurrency and precious metals enthusiasts are buzzing with excitement as Stacked, or STKD, debuts their latest exchange-traded fund offering leveraged exposure to Bitcoin and gold. This move comes as investors eagerly adopt the “debasement trade” strategy in anticipation of the upcoming US presidential elections.
The newly launched STKD Bitcoin & Gold ETF (BTGD) is uniquely positioned to provide investors with the opportunity to invest in two assets known for their scarcity, offering potential protection against future inflation and currency debasement. By allocating $1 into the BTC and $1 into a gold portfolio for each dollar invested, this actively managed ETF holds a diversified mix of ETFs and futures tied to the price movements of Bitcoin and gold.
According to a recent report by JPMorgan, the current geopolitical tensions and uncertainty surrounding the US elections are fueling the demand for both Bitcoin and gold as investors seek refuge in these safe-haven assets. This trend towards the so-called debasement trade is evident in the growing interest in cryptocurrency ETFs, with Canary Capital and Bitwise planning to launch offerings holding XRP and Litecoin.
As STKD joins the ranks of companies expanding into the cryptocurrency ETF space, the market is abuzz with anticipation. Leveraged MicroStrategy ETFs have already surpassed $400 million in net assets this week, attracting retail investors looking to capitalize on the volatile Bitcoin market. However, it’s essential to note that leveraged ETFs come with added risk and may underperform due to the costs associated with daily rebalances.
The unveiling of STKD’s innovative Bitcoin and Gold ETF marks an exciting development in the world of cryptocurrency and precious metals investing. Stay tuned for more updates on the evolving market trends and investment opportunities in our Markets Outlook newsletter, delivering crucial insights every Monday. Subscribe now to refine your trading strategies and stay ahead of the curve!
