4 Reasons Why STKD Bitcoin & Gold ETF (NASDAQ: BTGD) Could Be Poised For Upside Potential
The Fund does not invest directly in Bitcoin or any other digital assets. The Fund does not invest in or seek direct exposure to the current "spot" or cash price of Bitcoin. The Fund does not invest directly in gold or gold bullion. Investors seeking direct exposure to the price of gold and/or Bitcoin should consider an investment other than The Fund.
STKD Bitcoin & gold etf
(NASDAQ: BTGD)
Dual Asset exposure
the key to this fund's innovative approach
$1 Invested = $1 bitcoin + $1 gold exposure
The STKD Bitcoin & Gold ETF (NASDAQ: BTGD) stands out by offering simultaneous exposure to two highly influential assets: Bitcoin and gold. Bitcoin, known for its volatility, has drawn significant attention from retail investors. On the other hand, gold has long been revered as a stable asset that provides a hedge during economic uncertainty.
For traders looking to capitalize on the price fluctuations and upside potential of Bitcoin while diversifying their portfolios with gold, BTGD offers a balanced, professionally managed approach. This combination could prove particularly appealing during periods of inflation or market volatility, as gold tends to maintain its value when other assets decline.
Capital efficiency and Active Management
BTGD’s innovative structure allows traders to stretch their capital further. With every $1 invested, traders get $1 of Bitcoin exposure and $1 of gold exposure. This capital efficiency can be particularly beneficial for retail traders who are mindful of maximizing their investments.
Additionally, BTGD’s active management means that professionals monitor and adjust the fund’s asset allocations based on market conditions. This active approach can help mitigate risk while optimizing returns, providing peace of mind to those who prefer a hands-off approach but still want to reap the benefits of market movements.
Unique Investment strategies
The fund combines exposure to Bitcoin and gold by leveraging futures contracts and pooled investment vehicles such as exchange-traded products (ETPs) instead of leveraging the assets directly. We believe this approach allows the fund to enter and exit positions more efficiently, reducing transaction costs and the time it takes to adjust portfolio allocations. Additionally, utilizing this futures based strategy as opposed to trading the assets themselves is what allows the company to employ their unique "stacking" strategy, which effectively doubles the exposure that would be available otherwise.
Basically, for each dollar an investor puts into the fund, they gain a dollar's worth of investment tracking the performance of the fund's Bitcoin strategy and one dollar tracking their Gold strategy. This is based on the belief that the combination of investing in both, considering their historically low correlation in historical price movements, creates an ultimately more stable investment over time. To this end, the fund primarily invests in:
- Gold futures contracts
- Bitcoin futures contracts
- Underlying funds providing exposure to gold
- Underlying funds providing exposure to bitcoin
- Cash and cash equivalents
- Reverse repurchase agreements
STKD BITCOIN & GOLD ETF
(NASDAQ: BTGD)
The Dual-Asset Advantage - Debasement
In 1971, President Nixon abandoned the gold standard and shifted the US Dollar to a fiat currency system. Fiat currencies are backed by nothing more than the government’s promises - subjecting the U.S. dollar to inflation and devaluation, and ultimately eroding purchasing power. Within the months following the conversion to fiat currency, the value of gold multiplied several times over.
Although this was only supposed to be a temporary shift, that was not the case, and this moment in financial history left the US Dollar’s value subject to various economic challenges. With an investment in $BTGD, your dollar amount is now offered a powerful hedge against our fiat currency. There are supporting reasons for converting to fiat currency, but in this current climate, debasement of the US Dollar is worth investors protecting themselves again.
Gold provides the traditional safeguard, and sometimes even an inverse, against economic uncertainty, but is also powered by the volatility and high-growth potential of Bitcoin in a world moving towards digital assets. Both currencies are decentralized and resistant to government manipulation, and also maintain a valuable scarcity that cannot be combated with a fiat currency.
Gold has held a stable store of value during any currency devaluation due to its limited supply and historical significance. Election uncertainty has been a valuable indicator of how gold can perform during an economic downturn. As supply continues to decrease, gold’s value could break all ceilings.
Although fractional shares are easily attainable at the moment, there will only ever be 21 million Bitcoins to exist, also offering a scarcity to make the currency more valuable as well. Bitcoin has also seen an increase of 224% since the start of 2023, demonstrating its ability to surge in growth at any time. Both Bitcoin and gold have not felt the effects that the U.S. Stock Market with the upcoming election.
Holding US Dollars exposes an investor's wealth to diminishing value and inflation, while in contrast, $BTGD gives the US Dollar the dual leverage of stable growth and positive volatility, all in one efficient investment.
Want Bitcoin & Gold But Don't Want To Split Your Investment?
$BTGD provides exposure to both Bitcoin & gold in a single ETF, so you don't have to.
STKD BITCOIN & GOLD ETF (NASDAQ: BTGD)'s latest ETF launch was spotlighted by Bloomberg's Matt Levine, yet there’s an
innovative edge we think is worth calling out: the unique resilience we believe gold brings to a Crypto portfolio.
They strongly believe in using crisis-tested assets like gold to enhance crypto portfolios, potentially minimizing drawdowns without sacrificing exposure.
STKD BITCOIN & GOLD ETF
(NASDAQ: BTGD)
WHAT YOU NEED TO KNOW ABOUT BITCOIN
Bitcoin: A Brief Description
Bitcoin, the first and most well-known modern digital asset, operates on a decentralized network using blockchain technology to facilitate secure and anonymous transactions. Bitcoin represents a digital asset that functions as a medium of exchange utilizing cryptographic protocols to secure transactional processes, control the creation of additional units, and verify the transfer of assets.
Its operation on a decentralized blockchain network ensures both transparency and immutability of records, without the need for a central authority. This innovative technology underpinning bitcoin allows for peer-to-peer transactions and provides a framework for digital scarcity, making bitcoin a unique investment commodity within the digital asset landscape. Although bitcoin is called a crypto or digital currency, it is not presently accepted widely as a means of payment.
Bitcoin Blockchain
The Bitcoin Blockchain constitutes a decentralized, digital ledger technology that chronologically and publicly records all bitcoin
transactions. This technology is characterized by its use of blocks, which are structurally linked in a chain through cryptographic hashes.
Each block contains a list of transactions that, once verified and added to the blockchain through a consensus process known as proof
of work, which may take an hour or more, becomes irreversible and tamper-evident. The integrity, transparency, and security of the
transactional data are maintained autonomously within the bitcoin network, eliminating the necessity for central oversight and
facilitating trust in a peer-to-peer system.
The Relationship Between Bitcoin and Bitcoin Blockchain
Bitcoin is a digital asset that operates on the Bitcoin Blockchain, a decentralized and cryptographic ledger system. The Bitcoin Blockchain underpins the entire bitcoin network, providing a secure and transparent mechanism for recording bitcoin transactions. Each bitcoin transaction is verified by network participants and permanently recorded on the Bitcoin Blockchain, ensuring the integrity and traceability of the digital asset.
Thus, while bitcoin serves as a medium of exchange or store of value, the Bitcoin Blockchain acts as the immutable record-keeping system that facilitates and authenticates the circulation and ownership of bitcoin. This symbiotic relationship ensures that bitcoin operates in a trustless and decentralized manner, with the Bitcoin Blockchain maintaining bitcoin’s history and scarcity.
Bitcoin and Bitcoin Blockchain Use Cases
Bitcoin and the Bitcoin Blockchain serve as innovative financial instruments within the digital economy, offering multiple use cases.
However, their adoption has been limited. Key applications include:
1. Decentralized Transactions: Bitcoin facilitates peer-to-peer financial transactions globally without the need for
intermediaries, reducing transaction costs and times. This feature makes it an attractive option for cross-border transfers and
remittances. Bitcoin and the Bitcoin Blockchain were designed to be used as an alternative general purpose payment system
and while bitcoin may be an attractive option for cross border transfers and remittances, it is presently not widely used as a
means of payment.
2. Store of Value: Due to its limited supply and decentralized nature, bitcoin is perceived as a digital alternative to traditional stores of value like gold, potentially serving as a hedge against inflation and currency devaluation.
3. Smart Contracts: While primarily associated with other blockchain platforms, the Bitcoin Blockchain can execute smart
contracts—self-executing contractual agreements with the terms directly written into code—thereby enabling automated and
conditional transactions.
4. Asset Tokenization: The Bitcoin Blockchain provides a platform for tokenizing assets, converting rights to an asset into a
digital token on the blockchain. This can include real estate, stocks, or other forms of assets, enhancing liquidity and market
efficiency. At this time this functionality is limited. Unlike the scripting language of blockchain platforms like Ethereum,
the scripting language of the Bitcoin Blockchain is not Turing complete, and thus more limited in terms of the types of smart
contracts it can support.
5. Digital Identity Verification: Leveraging the security and immutability of the Bitcoin Blockchain, companies can develop
digital identity verification systems, enhancing privacy and reducing identity theft. At this time this functionality is limited.
THE DEBASEMENT TRADE
The Effects of Inflation
Debasement Trade Definition:
Governments may debase their currency as a tool to manage economic policy, stimulate growth, reduce debt burdens, or respond to crises. However, this strategy involves significant risks and trade-offs, including potential inflation and loss of confidence in the currency.
"To us this suggests that speculative institutional investors such as hedge funds might see gold and bitcoin as similar assets, i.e. both as beneficiaries of the so-called 'debasement trade'"
- JPMorgan Team, MarketWatch, Oct 2024
STKD BITCOIN & GOLD ETF (NASDAQ: BTGD) provides investors with an ahead-of-the-curve solution
Sources
- Source 1: https://www.investopedia.com/news/how-bitcoin-works/
- Source 2: https://finance.yahoo.com/quote/BTGD/
- Source 3: https://quantifyfunds.com/btgd/summary-prospectus
- Source 4: https://www.nasdaq.com/market-activity/etf/btgd
- Source 5: https://quantifyfunds.com/
- Source 6: https://quantifyfunds.com/btgd/sai
- Source 7: https://quantifyfunds.com/btgd/prospectus
- Source 8: https://www.reuters.com/business/finance/most-banks-expect-golds-bull-run-persist-into-2025-2024-09-24/
- Source 9: https://www.barrons.com/articles/nvidia-moores-law-chip-speeds-23acc5c6
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Important Information
Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus. Please read the prospectus or summary prospectus carefully before you invest.
Bitcoin Investment Risks. The Fund’s indirect investment in bitcoin, through futures contracts and Underlying Funds, exposes it to the unique risks of this emerging innovation. Bitcoin’s price is highly volatile, and its market is influenced by the changing bitcoin network, fluctuating acceptance levels, and unpredictable usage trends.
Not being a legal tender and operating outside central authority systems like banks, bitcoin faces potential government restrictions. The value of bitcoin has historically been subject to significant speculation, making trading and investing in bitcoin reliant on market sentiment rather than traditional fundamental analysis.
Digital Assets Risk: Digital assets like bitcoin, designed as mediums of exchange, are still an emerging asset class and are not presently widely used as such. They operate independently of any central authority or government backing and are subject to regulatory changes and extreme price volatility.
Blockchain Technology Risk: Blockchain technology, which underpins bitcoin and other digital assets, is relatively new, and many of its applications are untested. The adoption of blockchain and the development of competing platforms or technologies could affect its usage.
Gold Investment Risks. The Fund will not invest directly in gold but will gain exposure through gold futures contracts and Underlying Funds. These investments are subject to significant risk due to the inherent volatility and unpredictability of the commodities markets. The value of these investments is typically derived from the price movements of physical gold or related economic variables.
Derivatives Risks. The Fund’s derivative investments carry risks such as an imperfect match between the derivative’s performance and its underlying assets or index, and the potential for loss of principal, which can exceed the initial investment.
Underlying Fund Risk. The Fund’s investment strategy, involving indirect exposure to bitcoin and gold through one or more Underlying Funds, is subject to the risks associated with bitcoin as well as gold. Shareholders in the Fund bear both their proportionate share of expenses in the Fund and, indirectly, the expenses of the Underlying Funds.
Potentially No 1940 Act Protections. It is expected that one or more Underlying Funds will not be registered as an investment company subject to the 1940 Act. In addition, Underlying Funds that invest directly in bitcoin or gold are not subject to the 1940 Act. Accordingly, investors in such an Underlying Fund would not have the protections expressly provided by that statute.
Cayman Subsidiary Risk. By investing in the Subsidiary, the Fund is indirectly exposed to the risks associated with the Subsidiary’s investments. The futures contracts and other investments held by the Subsidiary are subject to the same economic risks that apply to similar investments if held directly by the Fund.
General Market Risk. Economies and financial markets throughout the world are becoming increasingly interconnected, which increases the likelihood that events or conditions in one country or region will adversely impact markets or issuers in other countries or regions.
New Fund Risk. The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions.
Distributed by Foreside Fund Services, LLC.
Launch & Structure partner: Tidal ETF Services
Compensation: Pursuant to an agreement between Quantify Funds and The Investing Authority LLC, The Investing Authority LLC has been hired by Quantify Funds for a period beginning 11/01/2024 and ending on 11/01/2025 to publicly disseminate information about NASDAQ: BTGD via digital communications. We anticipate payment of $7600 per month for 12 months.
