Cantor Fitzgerald Launches a Hybrid Gold-Bitcoin Investment Product

A major Wall Street financial institution has launched an innovative investment product that combines the strengths of gold and Bitcoin.

Cantor Fitzgerald announced on Monday the launch of its ‘Cantor Fitzgerald Gold-Protected Bitcoin Fund.‘

Balancing Risk and Reward

This new fund strategically minimizes downside price risk by integrating gold and Bitcoin. In exchange, investors must give up some potential upside gains.

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Investors in this fund are entitled to 45% of Bitcoin’s appreciation over five years. However, if Bitcoin’s value declines, the fund will use returns from gold investments to protect up to 100% of the investors’ principal.

Even if Bitcoin’s price soars dramatically over the five-year investment period, investors in this product will only capture 45% of the upside.

Cantor Fitzgerald describes the fund as a product that minimizes short-term volatility risks. The fund allows investors to benefit from Bitcoin’s long-term upward trend.

Strategic Timing and Protection

Bill Ferri, Global Head of Asset Management at Cantor Fitzgerald, stated that timing and protection matter. He explained this is particularly true “with risk assets at or near all-time highs.”

His comment underscores the necessity for investments that also mitigate downside risk. This is especially true with Bitcoin prices hovering near their all-time peaks.

“At Cantor, we create innovative products that reflect the shift in how Bitcoin is perceived, from speculative risk to strategic opportunity,” said Brandon G. Lutnick, Chairman of Cantor Fitzgerald. This fund is exclusively available to high-net-worth individuals and institutional investors.

Cantor Fitzgerald also manages the reserves for Tether, USDT’s issuer and the world’s largest stablecoin.

In April, Cantor Fitzgerald also launched a DAT company named Twenty One Capital in collaboration with stablecoin issuer Tether and SoftBank. The company’s goal is to accumulate Bitcoin.

Howard Lutnick, who served as CEO of Cantor Fitzgerald, is well-known for being the former Secretary of Commerce in the Trump administration.