Wall Street firm Cantor Fitzgerald has introduced the Gold Protected Bitcoin Fund, a new five-year investment product designed to give investors partial exposure to bitcoin’s price gains while using gold as a downside buffer.
How the fund works
The fund allocates capital between bitcoin and gold, providing investors with 45% of bitcoin’s appreciation over the five-year term.
If bitcoin’s price declines, the gold allocation is intended to protect up to 100% of the investor’s initial capital in dollar terms.
This dual approach aims to offer growth potential alongside capital protection.
Brandon G. Lutnick, Chairman and CEO of Cantor Fitzgerald, described the rationale behind the new offering:
“At Cantor, we create innovative products that reflect the shift in how Bitcoin is perceived, from speculative risk to strategic opportunity. This fund offers downside protection, giving investors a safer way to gain exposure into this growing asset class.”
Market context and volatility
The launch comes as bitcoin trades near historic highs, having recently hit an all-time high of about $124,000 before pulling back to above $112,000.
Gold, meanwhile, has reached new records above $3,600 per ounce, reinforcing its status as a safe-haven asset.
Risk management features
The fund’s structure includes rebalancing and loss thresholds to help reduce drawdowns during turbulent markets.
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.”
Institutional interest rising
The introduction of products like this comes amid growing institutional demand for bitcoin exposure, especially following the approval of spot bitcoin ETFs in 2024.
