🇺🇸 Cantor Fitzgerald launches the first Bitcoin fund with gold price risk protection mechanism

Cantor Fitzgerald Asset Management has announced plans to launch the first investment fund focused on Bitcoin, named the Cantor Fitzgerald Gold Protected Bitcoin Fund. This fund combines direct Bitcoin holdings with a risk protection mechanism based on fluctuations in gold prices.

The fund is designed with a 5-year term, aimed at allowing investors to fully benefit from profits if Bitcoin prices rise sharply. At the same time, if Bitcoin prices fall, investors will be protected by linking the loss level to gold prices at a 1-1 ratio. In other words, if Bitcoin decreases, the fund will mitigate losses by offsetting part of the loss through the increasing value of gold.

In terms of operation, the fund may use part of its capital to directly purchase Bitcoin and the remaining portion to invest in derivatives or gold price insurance contracts to hedge risk. This mechanism does not completely eliminate the possibility of losses but will help minimize the level of damage if Bitcoin declines and gold prices increase.

For example, if Bitcoin falls by 40%, instead of losing the entire amount, the fund may help investors incur only a smaller loss, or even offset part of the loss, depending on the movements of gold prices at the same time.

This is a strategic move that helps investors access the crypto market in a safer and more flexible manner, especially in the context of digital assets increasingly attracting global attention.