A Strategic Inflation Hedge for Volatility

• Fund issuer Stacked has launched an STKD Bitcoin and Gold ETF, an innovative product that merges two of the most significant players in global finance.
• The STKD Bitcoin & Gold ETF represents an important innovation for investors seeking a solid, well-balanced diversification strategy and a diverse portfolio.

After five years of spirited resistance by the Securities and Exchange Commission(SEC) to approve Bitcoin-based Exchange-Traded-Funds, the Bitcoin & Gold ETF​ (BTGD) adds to the list of 11 ETFs approved this year since January 11. On October 16, Funds Issuer Stacked (STKD) announced the launch of the ETF that combines Bitcoin, the dominant cryptocurrency, and gold, the time-tested safe-haven asset. 

Bitcoin is known for its volatility, with the potential for high returns, attracting those interested in aggressive growth strategies. Meanwhile, gold has long been favored for its reliability in protecting wealth during times of economic uncertainty. The STKD ETF seeks to leverage the low correlation between these assets, meaning that their price movements are generally independent.

What are the Rewards of Bitcoin and Gold?

In a press release, Quantify Funds, an asset management firm stated that the BTGD fund stands out by aiming to deliver 100% exposure to both its Bitcoin and gold strategies for every dollar invested.

Adding on that, the Bitcoin strategy focuses on achieving price returns by investing in Bitcoin futures and exchange-traded products (ETPs), while the gold strategy seeks similar returns through investments in gold futures and gold ETPs. This dual approach allows investors to benefit from both asset classes simultaneously.

Both Bitcoin and gold can act as valuable hedges against inflation and the weakening of fiat currencies, with Bitcoin being noted for its potential in this area. Recently, Arthur Hayes, the co-founder of BitMEX, suggested that Bitcoin’s price could surge as inflation rises, driven by global conflict and economic instability.

Peter Schiff, a prominent economist and long-time supporter of gold, continues to fuel the ongoing debate between Bitcoin and gold. In a recent post on X, the latter criticized the attention being given to what he referred to as a “meaningless, Trump-inspired Bitcoin pump,” suggesting that many are overlooking a more significant event, gold reaching a new all-time high above $2,680.

Schiff emphasized that although Bitcoin has experienced price increases, it has remained relatively stagnant within a specific price range for the past seven months. In contrast, he pointed out that gold continues to set new record highs, highlighting its consistent performance. He also referenced a CNBC interview where the spotlight was on Bitcoin’s rise to $68,000, while the historic achievement of gold was completely ignored. This, according to Schiff, reflects a broader tendency to overlook gold’s steady upward trend in favor of Bitcoin’s more dramatic, short-term gains.

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Based on the global political and economic instability, experts foresee all-time highs for both commodities in the future.

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