Cantor plans Bitcoin fund with gold 'downside protection'
Quick Take
- Cantor Fitzgerald Asset Management said it’s planning a fund that will offer direct exposure to Bitcoin while simultaneously providing “1-to-1 downside protection based on the price of gold.”
Cantor Fitzgerald Asset Management said on Thursday it's launching a new Bitcoin fund with a gold hedge.
In a rather brief statement, Cantor said it's planning a fund that will offer direct exposure to Bitcoin's upside while simultaneously providing "1-to-1 downside protection based on the price of gold."
This is Cantor's "first Bitcoin-focused investment vehicle," it said, adding that the fund will be structured with a five-year duration and the instrument will have no cap on a potential upside. The fund is expected to begin accepting investment capital in the coming weeks, Cantor also said.
"This is a truly groundbreaking investment vehicle, one that helps investors to tap into Bitcoin’s potential growth with downside protection based on the price of gold," Cantor Chairman Brandon Lutnick said in the statement. The chairman is the son of Cantor's former CEO, Howard Lutnick, who recently left Wall Street to assume the role of U.S. Secretary of Commerce in President Trump's administration.
Bitcoin was trading at $106,721.54 as of 1:39 p.m. ET, according to The Block Price Page. Amid pronounced economic uncertainty and market volatility, much of which has been brought on by President Trump's tariff strategy, gold has performed well this year and is up approximately 30%, according to Yahoo Finance.
Cantor's announcement of its first Bitcoin fund comes after the firm said it had closed its first tranche of Bitcoin financing deals with Maple Finance and FalconX earlier this week. As part of its "Bitcoin Financing Business," Cantor plans to initially make up to $2 billion in financing available to institutional clients.
The 79-year-old firm, which appears to be growing increasingly interested in digital assets, has $14.8 billion in assets under management, Cantor also said in its statement.
In April, it was reported that Cantor Fitzgerald was planning a $3 billion Bitcoin investment project with SoftBank, Tether, and Bitfinex.
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