Wall Street investment bank Cantor Fitzgerald is considering a new fund that protects investors against Bitcoin’s volatility with gold.
Announced on Thursday at the Bitcoin 2025 conference in Las Vegas, the investment vehicle will offer uncapped BTC exposure with “downside protection” tied to gold.
Per an official release, the fund is set to run for 5 years and aims to provide uncapped upside participation in Bitcoin. The fund will offer 1-to-1 downside protection based on the price of gold.
Fund Would Address Investors’ Fears Over Bitcoin’s Sudden Price Drops
At Cantor, we are focused on delivering innovative products that support clients seeking exposure to digital asset investments,” said Brandon G. Lutnick, Chairman of Cantor Fitzgerald.
He called it a “ground breaking investment vehicle” that helps investors tap into Bitcoin’s potential growth with downside protection based on the price of gold.
Speaking at the conference, Lutnick addressed investors, noting that the fund Balances Bitcoin’s volatility with the precious metal’s stability.
“There are still people on the earth that are scared of Bitcoin, and we want to bring them into this ecosystem,” he said.
The fund will be available to investors in the coming weeks, the company added.
Cantor Launches $2B Bitcoin-Backed Lending Initiative
The gold-hedged Bitcoin fund launch follows Cantor’s official launch of a $2 billion Bitcoin-backed lending with first loans.
The investment bank announced early this week that the lending initiative will provide financing to crypto firms FalconX Ltd. and Maple Finance.
Cantor has launched a string of crypto-focused ventures in the past. An affiliate of the investment bank in April teamed up with Tether Holdings and SoftBank Group to launch Bitcoin accumulator Twenty One Capital Inc.
Following a string of corporate implosions in 2022, including Celsius and BlockFi, there has been a surge in crypto-backed lending. For instance, in March, Bitcoin software firm Blockstream Corp. secured a multi-billion dollar investment in its crypto lending funds.
David Mercer, chief executive of the institutional trading platform LMAX Group, told Bloomberg that the new lenders will be “much more institutional in nature.”
“More banks will enter the space and provide credit mechanisms to some of the largest institutions you can imagine to trade these assets.”
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