tl;dr
Cantor Fitzgerald has launched the Gold Protected Bitcoin Fund, a new investment strategy designed to hedge against Bitcoin's volatility by combining exposure to Bitcoin with gold as a safe-haven asset. The fund aims to capture Bitcoin's potential for growth while mitigating losses during market d...
**Cantor Fitzgerald Launches Gold-Protected Bitcoin Fund to Hedge Volatility**
Wall Street’s latest move into the crypto world has taken a novel turn: Cantor Fitzgerald, a veteran player in financial markets, is offering investors a new way to bet on Bitcoin’s future while cushioning the blow of its infamous volatility. The firm unveiled its **Cantor Fitzgerald Gold Protected Bitcoin Fund** on Monday, a strategy that blends Bitcoin’s potential for growth with gold’s reputation as a safe haven.
The fund, first announced in May at the Bitcoin 2025 conference in Las Vegas, aims to tackle a familiar problem for crypto investors: Bitcoin’s rollercoaster ride. Over its 16-year history, the digital asset has surged to record highs and then plunged by more than 80% in a single year. “This strategy spans five years and tackles both risks head-on,” said Bill Ferri, Global Head of Cantor Fitzgerald Asset Management. “It captures Bitcoin’s upward trajectory while gold provides a safety net that historically performs well when markets decline.”
At its core, the fund uses gold as a hedge. If Bitcoin’s price dips—whether due to a bear market, regulatory shifts, or macroeconomic jitters—the fund’s exposure to gold is designed to offset losses. This dual-asset approach is a response to a growing concern: even as Bitcoin’s long-term appeal grows, its short-term volatility remains a hurdle for institutional and retail investors alike.
Bitcoin’s recent performance underscores the need for such a strategy. The cryptocurrency is trading near $112,182, up about 20% year-to-date but down nearly 9% from its all-time high of $124,128 last month. While the approval of spot Bitcoin ETFs has drawn billions in institutional capital, reducing some of the asset’s volatility, the market still faces risks. During the 2021 bull run, Bitcoin soared to over $69,000 per coin before collapsing to under $16,000 in 2022. Analysts say the current cycle could still have more ups and downs ahead.
Gold, meanwhile, has been a reliable anchor. The precious metal hit a new high of $3,680 per ounce this week, up over 37% year-to-date. As central banks and investors brace for economic uncertainty, inflation, and potential recessions, gold’s role as a “flight-to-safety” asset has only strengthened.
Cantor Fitzgerald’s entry into this space isn’t new. The firm has long been a vocal supporter of Bitcoin, including its role in custodianship of Tether’s USDT stablecoin, which backs the world’s largest stablecoin. Howard Lutnick, Cantor’s former CEO and now U.S. Commerce Secretary, has also been a prominent figure in shaping crypto policy, including his advisory role during Donald Trump’s 2024 campaign.
For investors, the fund represents a middle ground: it doesn’t require betting on Bitcoin’s price directly, but instead leverages its upside while mitigating downside risk. Ferri emphasized that “timing and protection matter” in today’s markets, where risk assets like stocks and crypto are at or near all-time highs.
As Bitcoin’s journey continues, the question remains: Can a gold-backed fund truly balance the wild swings of crypto with the steadiness of traditional assets? For now, Cantor Fitzgerald’s bet is that it can—and that investors hungry for growth but wary of chaos may find this hybrid approach worth a try.