Wall Road agency Cantor Fitzgerald has launched the Gold Protected Bitcoin Fund, a brand new five-year funding product designed to present traders partial publicity to bitcoin’s worth beneficial properties whereas utilizing gold as a draw back buffer.
How the fund works
The fund allocates capital between bitcoin and gold, offering traders with 45% of bitcoin’s appreciation over the five-year time period.
If bitcoin’s worth declines, the gold allocation is meant to guard as much as 100% of the investor’s preliminary capital in greenback phrases.
This twin method goals to supply development potential alongside capital safety.
Brandon G. Lutnick, Chairman and CEO of Cantor Fitzgerald, described the rationale behind the brand new providing:
“At Cantor, we create modern merchandise that mirror the shift in how Bitcoin is perceived, from speculative danger to strategic alternative. This fund gives draw back safety, giving traders a safer approach to achieve publicity into this rising asset class.”
Market context and volatility
The launch comes as bitcoin trades close to historic highs, having just lately hit an all-time excessive of about $124,000 earlier than pulling again to above $112,000.
Gold, in the meantime, has reached new data above $3,600 per ounce, reinforcing its standing as a safe-haven asset.
Threat administration options
The fund’s construction consists of rebalancing and loss thresholds to assist cut back drawdowns throughout turbulent markets.
Invoice Ferri, International Head of Asset Administration at Cantor Fitzgerald, defined:
“This gold-protected Bitcoin technique spans 5 years and tackles each dangers head-on: it captures Bitcoin’s upward trajectory whereas gold supplies a security web that traditionally performs properly when markets decline.”
Institutional curiosity rising
The introduction of merchandise like this comes amid rising institutional demand for bitcoin publicity, particularly following the approval of spot bitcoin ETFs in 2024.