BTGD: Combining Gold and Bitcoin in a Single ETF Wrapper

In an era marked by geopolitical tensions, inflationary pressures, and economic uncertainty, investors are increasingly seeking diversified strategies to preserve capital and hedge against systemic risks. The STKd 100% Bitcoin & 100% Gold ETF (BTGD) has emerged as a novel solution, combining exposure to two of the most prominent inflation hedges-gold and Bitcoin-within a single actively managed ETF wrapper. Launched on October 15, 2024, by Stacked, according to the StockAnalysis BTGD overview, BTGD leverages futures contracts and exchange-traded products (ETPs) to stack the returns of these assets, offering a unique proposition for portfolios navigating high-uncertainty environments.

The BTGD ETF: Structure and Performance

BTGD's asset allocation as of the latest data reflects a dual focus on gold and Bitcoin, with 66.21% allocated to the Gold Future Dec 25 and 53.77% to the Bitcoin Future Oct 25. Additional holdings include leveraged ETPs such as the ProShares Bitcoin ETF (BITO) and SPDR Gold Minishares Trust (GLDM), alongside cash offset allocations. This structure allows the fund to amplify exposure to both assets while mitigating liquidity constraints.

Performance metrics underscore BTGD's volatility and potential. As of May 2025, the ETF delivered a year-to-date (YTD) return of +41.73%, outpacing many traditional asset classes, according to PortfoliosLab data. However, it also experienced a maximum drawdown of 24.83% on April 8, 2025, highlighting the inherent risks of its leveraged strategy, as PortfoliosLab notes. The fund's 1.00% expense ratio, while higher than the market average, reflects the costs of active management and futures trading (PortfoliosLab).

Gold and Bitcoin: Time-Tested and Disruptive Hedges

Gold has long been a cornerstone of inflation hedging, with its price rising from approximately $1,400 per ounce in 2008 to over $3,400 by 2025, according to a Certuity analysis. Its low volatility and historical role as a store of value make it a reliable safe-haven asset, particularly during periods of macroeconomic instability. For instance, gold surged by 26.7% in 2024 amid geopolitical tensions and falling interest rates, delivering a cumulative 100% return from 2020 to 2024, as shown by Visual Capitalist.

Bitcoin, by contrast, offers a disruptive alternative. Despite its volatility-experiencing drawdowns of up to 80% during the 2022 bear market-the cryptocurrency has demonstrated a 953% cumulative return from 2020 to 2025 (Visual Capitalist). Its fixed supply of 21 million coins positions it as a counter to fiat currency inflation, though its speculative nature and shorter history (16 years) raise questions about its long-term reliability, as discussed in a Bankrate article. Notably, Bitcoin hit a record high of $125,000 in July 2025, driven by institutional adoption and geopolitical uncertainty, according to a DW report.

Correlation and Portfolio Resilience

The interplay between gold and Bitcoin during high-uncertainty periods reveals complementary dynamics. During short-term geopolitical crises (7–30 days), both assets exhibited similar price responses, with Bitcoin slightly outperforming in 52.63% of events, according to a CCN analysis. However, gold demonstrated stronger medium-term resilience (90 days) in 61.8% of cases (CCN). Over 180 days, Bitcoin's higher average returns make it a compelling long-term hedge, albeit with greater volatility (CCN).

This duality is critical for portfolio resilience. Gold's established safe-haven status and low correlation with equities (historically averaging 0.2–0.4) contrasts with Bitcoin's rising correlation with the S&P 500, which reached 0.65 in 2024, per a MOFSE analysis. While gold remains a stabilizer during prolonged crises, Bitcoin's potential for outsized gains can enhance returns in risk-on environments. BTGD's dual exposure thus balances stability and growth, offering investors a hedge against both inflation and market downturns.

Strategic Implications for Investors

BTGD's structure addresses a key challenge in modern portfolio management: balancing inflation protection with growth potential. By combining gold's stability with Bitcoin's innovation-driven returns, the ETF caters to investors seeking diversification in an unpredictable macro environment. However, its leveraged approach and high expense ratio necessitate careful risk assessment.

For conservative investors, gold's role as a traditional hedge remains irreplaceable, particularly in scenarios involving currency devaluation or geopolitical shocks (Certuity). Aggressive investors, meanwhile, may find Bitcoin's volatility appealing, especially with regulatory tailwinds and institutional adoption bolstering its legitimacy (DW). BTGD's hybrid model offers a middle ground, though its performance will depend on the relative strength of its components and macroeconomic conditions.

Conclusion

The BTGD ETF represents a bold experiment in asset allocation, merging the time-tested resilience of gold with the disruptive potential of Bitcoin. While its leveraged strategy and high costs pose risks, its dual exposure aligns with the growing demand for inflation hedges in a fragmented global economy. As macroeconomic uncertainty persists, BTGD's ability to stack returns from both assets may prove invaluable for portfolios seeking resilience without sacrificing growth.