In a groundbreaking move that bridges traditional and digital assets, Quantify Funds has launched the STKD Bitcoin & Gold ETF (BTGD)—an innovative investment vehicle designed to deliver 100% exposure to both bitcoin and gold within a single fund. This actively managed exchange-traded fund marks a significant evolution in asset diversification, catering to investors seeking balanced exposure to two of the world’s most recognized stores of value.
👉 Discover how this dual-asset strategy could reshape your investment approach.
A Unique Dual-Exposure Investment Model
Unlike conventional ETFs that focus on a single asset class, BTGD aims to provide equal exposure to both bitcoin and gold for every dollar invested. For example, if the fund holds $100 in assets, it targets $100 in exposure to bitcoin and another $100 in gold—effectively doubling the investment footprint through strategic leverage.
This is achieved not by direct ownership of physical gold or native bitcoin, but through a combination of:
- Bitcoin and gold futures contracts
- Exchange-traded products (ETPs) tied to these underlying assets
- Reverse repurchase agreements to generate additional capital for reinvestment
According to the fund’s prospectus, “If the Fund has $100 in assets, the Fund expects to achieve $100 of exposure to the Bitcoin strategy and $100 of exposure to the Gold strategy. This is akin to investing $100 in a bitcoin strategy fund, borrowing $100, and putting the borrowed $100 in a gold strategy fund.”
The use of leverage enables this symmetrical exposure, allowing investors to benefit from price movements in both markets without having to manage separate positions.
Why Combine Bitcoin and Gold?
Bitcoin and gold share key characteristics that make them compelling hedges against economic uncertainty:
- Store of value: Both are widely viewed as long-term wealth preservation tools.
- Inflation protection: Historically, gold has served as an inflation hedge; bitcoin is increasingly seen as "digital gold" with scarcity hard-coded into its protocol.
- Low correlation with equities: During market downturns, both assets have shown resilience, offering portfolio diversification benefits.
With bitcoin surpassing $68,000 in recent weeks—a level not seen since July—and up roughly 50% year-to-date, investor interest in crypto has surged. Meanwhile, gold hit an all-time high earlier in 2024 and has gained over 27% this year alone. The timing of BTGD’s launch aligns with heightened demand for diversified, alternative asset exposure.
👉 See how forward-thinking investors are balancing digital and physical assets.
How BTGD Achieves Its Strategy
The fund operates under an active management model led by Tidal Investments as the primary advisor and Quantify Chaos Advisors as sub-advisor. Portfolio managers reassess and rebalance holdings at least once per month to maintain the intended 1:1 exposure ratio between bitcoin and gold.
To enhance flexibility and capital efficiency, BTGD may engage in reverse repurchase agreements—a form of short-term borrowing where the fund sells securities to financial institutions with an agreement to repurchase them later at a higher price. The cash raised from these transactions can then be redeployed into other qualifying investments, supporting the fund’s leveraged structure.
It's important to note that BTGD does not hold physical gold or native bitcoin. Instead, it relies on regulated financial instruments such as futures and ETPs, which offer indirect but liquid exposure to price performance.
Core Keywords Driving Market Interest
This new ETF taps into several high-demand investment themes:
- Bitcoin ETF
- Gold ETF
- Dual-asset exposure
- Cryptocurrency investment
- Inflation hedge
- Diversified portfolio
- Leveraged ETF
- Digital gold
These terms reflect growing investor curiosity about hybrid financial products that merge legacy and emerging asset classes. By integrating these concepts naturally throughout its structure and messaging, BTGD positions itself at the intersection of innovation and stability.
Risks and Considerations
While the dual-exposure model presents compelling opportunities, it also introduces notable risks:
Price Volatility
Both bitcoin and gold can experience sharp price swings. Bitcoin, in particular, is known for its high volatility, which can amplify losses when combined with leverage.
Regulatory Uncertainty
The regulatory landscape for digital assets remains fluid. Changes in policy could impact the availability or valuation of bitcoin-related instruments.
Leverage Risk
Because BTGD uses leverage to double exposure, adverse price movements in either asset could result in outsized losses compared to non-leveraged funds.
Concentration Risk
As a non-diversified fund, BTGD focuses exclusively on bitcoin and gold strategies. This lack of diversification means poor performance in either market could significantly affect overall returns.
Investors should carefully assess their risk tolerance before allocating capital to leveraged or single-strategy funds.
Frequently Asked Questions (FAQ)
Q: Does BTGD hold actual bitcoin or physical gold?
A: No. The fund gains exposure through futures contracts and exchange-traded products rather than direct ownership.
Q: How does BTGD provide 100% exposure to both assets with only $1 invested?
A: It uses leverage—essentially borrowing against its assets—to double the effective investment size and allocate equally between bitcoin and gold strategies.
Q: What is the expense ratio for BTGD?
A: The fund carries a 1% annual expense ratio, which is competitive given its active management and complex strategy.
Q: Who manages the STKD Bitcoin & Gold ETF?
A: Tidal Investments serves as the advisor, with Quantify Chaos Advisors acting as sub-advisor. They jointly oversee portfolio allocation and risk management.
Q: How often is the portfolio rebalanced?
A: At least monthly, to ensure continued alignment with the target 1:1 exposure ratio between bitcoin and gold.
Q: Is BTGD suitable for conservative investors?
A: Due to its use of leverage and concentration in two volatile assets, BTGD is better suited for investors with higher risk tolerance and a long-term outlook.
👉 Learn how next-generation ETFs are redefining portfolio construction.
Final Thoughts
The launch of the STKD Bitcoin & Gold ETF represents a bold step forward in hybrid investing. By combining two globally recognized stores of value into one accessible product, BTGD offers a fresh solution for modern portfolios navigating inflation, currency devaluation, and technological disruption.
While not without risk, this innovative fund reflects a broader trend: the convergence of traditional finance and digital asset markets. As demand for flexible, diversified crypto-access vehicles grows, products like BTGD may become increasingly central to mainstream investment strategies.
For forward-looking investors, understanding how such funds operate—and knowing when to use them—is key to building resilient, future-ready portfolios.