Authored by Mat Di Salvo via Decrypt.com,
The fund will supposedly protect investors from Bitcoin's sometimes huge dips by using the precious metal...
Wall Street giant Cantor Fitzgerald debuted a new fund Monday that aims to give investors exposure to Bitcoin's gains and downside protection with gold.
The fund, the Cantor Fitzgerald Gold Protected Bitcoin Fund, which was announced in May at the Bitcoin 2025 conference in Las Vegas, Nevada, aims to address the concerns of investors scared of Bitcoin
Monday's announcement said that the fund "minimizes the risk of short-term volatility and reduces the impact of correlation spikes while continuing to benefit from the long-term upside trend of Bitcoin."
"This gold-protected Bitcoin strategy spans five years and tackles both risks head-on: it captures Bitcoin's upward trajectory while gold provides a safety net that historically performs well when markets decline," Global Head of Cantor Fitzgerald Asset Management Bill Ferri said.
He added:
"With risk assets at or near all-time highs, timing and protection matter."
Decrypt reached out to Cantor Fitzgerald for comment.
Bitcoin, the largest and oldest digital asset, has in the past made massive gains but experienced huge drops throughout its 16 year history.
Bitcoin was recently trading at under $112,182, up about 1% over the past 24 hours and more than 20% year-to-date according to cryptocurrency markets data provider CoinGecko. But the leading cryptocurrency by market cap has fallen nearly 9% since reaching an all-time high of $124,128 last month.
To be sure, experts recently told Decrypt that with the approval of spot Bitcoin ETFs, which institutions have flooded into, the asset should experience less volatility. The digital coin's volatility has significantly dampened this year.
But during the last bull market of 2021, the asset hit a high of over $69,000 per coin only to plunge to under $16,000 the following year. The current up cycle has likely yet to see an end, many analysts believe.
Cantor's Bitcoin lending business has carried out its first transactions, the investment banking giant announced on Tuesday, underscoring its increasing presence in the crypto space. Prime broker FalconX and crypto lending protocol Maple Finance were the first companies to draw on the financing. The New York-based Cantor, part of Cantor Fitzgerald, expects to make up to $2 billion in financing available in this first phase, the company said. “Early on, Cantor recognized the transformative impact...
Gold, the traditional save haven asset, hit a new high Monday near $3,680 per ounce and is up more than 37% year-to-date, amid ongoing concerns about the U.S. economy, inflation and other macroeconomic uncertainties.
Cantor was among the early, vocal Wall Street supporters of Bitcoin. The firm helps custody the Treasury reserves for stablecoin giant Tether's USDT stablecoin product. Its former chairman and CEO Howard Lutnick, an advisor to Donald Trump during his 2024 presidential campaign, is now U.S. Commerce Secretary.