Key Takeaways
- Cantor Fitzgerald is launching its first Bitcoin-focused fund.
- The new product offers full upside exposure to Bitcoin with 1:1 downside protection through gold.
- Bitcoin ETFs have seen $9 billion in inflows over the past five weeks, while gold ETFs have lost $2.8 billion.
Cantor Fitzgerald Asset Management is making its first major move into Bitcoin (BTC) with a new investment product that blends digital asset upside with old-school downside protection.
Called the Gold Protected Bitcoin Fund, the vehicle is designed to give investors full exposure to Bitcoin’s gains while using gold to hedge against losses.
It’s an unusual pairing, and one that signals how traditional finance is evolving to meet growing interest in crypto from more conservative investors.
Cantor Launches Gold-Hedged Bitcoin Fund
The fund will run for five years and promises uncapped upside if Bitcoin rallies.
However, if BTC tumbles, investors won’t eat the full loss; the downside is matched 1:1 with gold.
That means the value of the fund’s gold holdings helps offset any drop in Bitcoin’s price.
The structure is tailor-made for investors who want exposure to Bitcoin’s potential without taking on all the volatility that usually comes with it.
“We believe this is a groundbreaking investment vehicle—one that helps investors tap into Bitcoin’s potential growth with downside protection based on the price of gold,” said Brandon G. Lutnick, Chairman of Cantor Fitzgerald.
He added that the fund represents Cantor’s “entrepreneurial spirit” and commitment to rethinking how digital assets fit into the broader financial landscape.
Timing the Shift
Cantor’s new fund comes at a time when money is already flowing out of gold and into Bitcoin.
Over the past five weeks, U.S.-listed Bitcoin ETFs have attracted more than $9 billion in new investment, led by BlackRock’s iShares Bitcoin Trust (IBIT).
In contrast, gold ETFs have seen $2.8 billion in outflows, according to Bloomberg data.
Bitcoin recently hit an all-time high above $111,000, buoyed by spot ETF approvals and macro uncertainty. Gold is up 25% this year but has pulled back from its peak.
Some analysts believe Bitcoin is starting to take gold’s place in investor portfolios as a hedge against fiat debasement.
“I remain bullish on gold and Bitcoin,” said Jefferies’ Christopher Wood. “They’re the best defenses against G7 currency debasement.”
Others note Bitcoin’s performance is becoming less tied to traditional markets.
“Its recent intraday correlation with Nasdaq, the dollar, and even gold has been remarkably low,” said Dilin Wu of Pepperstone.
Giuseppe Ciccomascolo began his career as an investigative journalist in Italy, where he contributed to both local and national newspapers, focusing on various financial sectors.
Upon relocating to London, he worked as an analyst for Fitch's CapitalStructure and later as a Senior Reporter for Alliance News. In 2017, Giuseppe transitioned to covering cryptocurrency-related news, producing documentaries and articles on Bitcoin and other emerging digital currencies. He also played a pivotal role in establishing the academy for a cryptocurrency exchange website. Crypto remained his primary area of interest throughout his tenure as a writer for ThirdFloor.
