Fund issuer Stacked, also known as STKD, has launched an exchange-traded fund (ETF) touting leveraged exposure to Bitcoin ( BTC ) and gold as investors embrace the so-called “debasement trade” ahead of the United States presidential elections in November.

According to the Oct. 16 announcement , STKD Bitcoin & Gold ETF​ (BTGD) aims to offer investors “the opportunity to invest in two scarcity assets that may protect against future inflation and currency debasement.”

The actively managed ETF is designed to deliver $1 of exposure to BTC and $1 to a gold portfolio for every $1 put into the fund. It intends to hold a mix of ETFs and futures tied to the price of BTC and gold.

Futures contracts are standardized agreements to buy or sell an underlying asset at a future date.

STKD launches Bitcoin and gold ETF as ‘debasement trade’ gains traction image 0

Source: JPMorgan

Related: Geopolitical tensions, US elections favor Bitcoin ‘debasement trade’: JPMorgan

Investors are turning to BTC and gold as they brace for a “catastrophic scenario” amid rising geopolitical tensions, according to an Oct. 3 report by JPMorgan .

“[R]ising geopolitical tensions and the coming [United States] election are likely to reinforce the ‘debasement trade’ thus favoring both gold and Bitcoin,” according to the report, which JPMorgan shared with Cointelegraph. 

The so-called debasement trade refers to a spike in gold demand caused by factors ranging from “structurally higher geopolitical uncertainty since 2022, to persistent high uncertainty about the longer-term inflation backdrop, to concerns about […] persistently high government deficits across major economies,” among others, JPMorgan said.

STKD further explained the strategy:

“[O]ne of the more heavily debated narratives has been that of ‘bitcoin vs. gold’… but a discussion built on ‘versus’ misses the larger role that both assets can play for those investors looking for a mix of capital appreciation and portfolio hedging.”
STKD launches Bitcoin and gold ETF as ‘debasement trade’ gains traction image 1

Source: Eric Balchunas

STKD’s product launch comes amid a proliferation of proposed ETFs holding cryptocurrencies ahead of the US presidential election in November.

In October, asset manager Canary Capital tipped plans to launch ETFs holding XRP and Litecoin ( LTC ). Bitwise also plans to launch an XRP ETF. 

Meanwhile, leveraged MicroStrategy ETFs broke $400 million in net assets this week as retail investors pour into ultra-volatile BTC plays, according to data from Bloomberg Intelligence.

Leveraged ETFs add additional risk and tend to underperform due to the costs of daily rebalances to maintain a leverage target.

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