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Quantify Chaos Files ETF to Combine Bitcoin and Gold for Unique Investment Strategy

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Quantify Chaos has filed for a groundbreaking ETF that combines Bitcoin and Gold, leveraging futures and ETFs for a unique investment strategy aimed at long-term capital appreciation, according to the latest SEC filing.

Quantify Chaos Proposes Innovative ETF Combining Bitcoin and Gold, Leveraging Futures for Unique Strategy

According to CoinGape, Quantify Chaos has proposed a new Exchange-Traded Fund (ETF) to integrate Bitcoin (BTC) and Gold.

A recently filed Exchange-traded Fund (ETF) is designed to unite Bitcoin (BTC) and Gold into a single product.

Henry Jim, the famous analyst of ETF Hearsay, revealed the news of a stacked Bitcoin and gold ETF on X. The proposed offering employs leverage to simultaneously provide 100% exposure to gold and BTC, as indicated in the description submitted to the United States Securities and Exchange Commission (SEC).

This is intended to be accomplished by utilizing Bitcoin futures and ETFs, as well as Gold futures and ETFs. This would be the first of its kind for ETF products of this nature. Quantify Chaos serves as the sub-advisor for the proposed offering.

The STKD Bitcoin & Gold ETF, as referred to in the filing, is intended for long-term capital appreciation. Portfolio turnover information is presently unavailable because the offering is newly organized.

The filing system has observed that the STKD Bitcoin and gold ETF "employs leverage to stack the total return of holdings in the Fund's Bitcoin strategy with the total return of holdings in the Fund's Gold strategy."

Combining Bitcoin and Gold in One ETF: Quantify Chaos Aims to Mitigate Market Fluctuations

As indicated by its design, every investment is intended to follow and potentially profit or lose from two distinct investment strategies.

It is important to note that the decision to introduce this product and implement STKD's investment strategy is predicated on the conviction that combining Bitcoin and Gold strategy investments could provide complementary advantages. This theory was popularized due to the historically low correlation between the two assets. It is essential to acknowledge that their historical price fluctuations have yet to be closely correlated.

Ultimately, the product is solely concerned with reducing the overall investment outcome by combining assets with low correlation, thereby mitigating the impact of short-term market fluctuations. This could increase the prevalence of a more consistent investment trajectory in the long term.

Spot Bitcoin ETFs perform independently, capturing a substantial portion of the broader ETF market. On June 26, the Bitcoin ETF market experienced a positive inflow of over $21 million. Fidelity was the driving force behind this inflow, while BlackRock remained stagnant, recording zero inflows. Conversely, Grayscale's GBTC attracted attention with its positive flows after an outflow sequence.

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