Cantor Fitzgerald launches Bitcoin fund with a "gold shield" mechanism to reduce risk
Cantor Fitzgerald Asset Management has just announced the launch of its first Bitcoin investment fund, highlighting a risk protection mechanism based on gold prices. The fund is named Cantor Fitzgerald Gold Protected Bitcoin Fund, combining direct Bitcoin holdings with gold to hedge against price declines.
The fund is designed with a 5-year term, allowing investors to fully benefit from Bitcoin's price appreciation while minimizing losses if the market declines. If Bitcoin's price decreases, the investor's losses will be partially offset based on gold price movements, thanks to a 1-1 ratio hedging mechanism.
The fund's operational strategy is flexible capital allocation: part of the capital buys Bitcoin, while the remaining part invests in derivative instruments or gold insurance contracts. Although it does not completely eliminate risk, this mechanism will provide investors with more peace of mind amidst the strong fluctuations of the crypto market.
For example, if Bitcoin drops by 40%, the fund can help investors significantly reduce losses or even balance them out due to rising gold prices.
This is a strategic advancement, opening a safer investment avenue for institutions and individuals looking to access the cryptocurrency market amid increasing global demand.
Risk warning: Crypto is a highly volatile field not suitable for everyone. This article is not investment advice. Please consider carefully before participating in the market.