Cantor Fitzgerald Launches New Fund Combining Bitcoin and Gold
Cantor Fitzgerald, a major Wall Street firm, has introduced a new investment product. This fund lets investors benefit from bitcoin’s growth while protecting their money with gold. The product is called the Cantor Fitzgerald Gold Protected Bitcoin Fund.
How the Fund Works
The fund lasts for five years. It mixes bitcoin and gold to balance risk and reward. Investors receive 45% of bitcoin’s gains during this time. If bitcoin’s price falls, gold helps protect the original investment. This means investors won’t get all the profits from bitcoin, but they have a safety net if bitcoin’s value drops.
Brandon G. Lutnick, Chairman and CEO of Cantor Fitzgerald, said, “At Cantor, we create innovative products that reflect the shift in how Bitcoin is perceived, from speculative risk to strategic opportunity.” He added, “This fund offers downside protection, giving investors a safer way to gain exposure into this growing asset class.”
Bitcoin and Gold Market Context
Bitcoin is known for its price swings. After hitting a record high near $124,000 last month, bitcoin’s price dropped to just above $112,000. Meanwhile, gold has reached new highs above $3,600 per ounce. Gold is still seen as a safe investment during uncertain times.
Cantor Fitzgerald’s fund aims to balance bitcoin’s growth with gold’s stability. Bill Ferri, Global Head of Asset Management at Cantor Fitzgerald, explained, “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.”
Risk Management and Fund Structure
The fund divides money between bitcoin and gold. Over five years, investors get 45% of bitcoin’s gains. If bitcoin falls, gold’s value helps protect the full initial investment in dollar terms.
The fund also uses rebalancing and loss limits to manage risk. These tools help reduce losses during market drops while keeping some exposure to bitcoin’s growth.
For example, if bitcoin’s price falls sharply in a month, gold helps absorb the loss. If bitcoin’s price rises quickly, gold limits the upside but reduces big swings in value.
Growing Interest in Bitcoin from Institutions
Since spot Bitcoin exchange-traded funds (ETFs) were approved in 2024, more institutions have shown interest in digital assets. These ETFs have helped reduce bitcoin’s price swings during the day. Still, many investors worry about bitcoin’s history of big ups and downs.
Bill Ferri said, “With risk assets at or near all-time highs, timing and protection matter.” Many big investors are excited about bitcoin’s future but want to avoid short-term losses.
Conclusion
Cantor Fitzgerald’s Gold Protected Bitcoin Fund offers a new way to invest in bitcoin with less risk. By combining bitcoin’s growth potential with gold’s safety, the fund aims to protect investors from big losses. This product may appeal to those who want to join the bitcoin market but worry about its ups and downs.
