Cantor Fitzgerald Launches Gold-Backed Bitcoin Fund for Institutional Investors

Cantor Fitzgerald, a well-established financial services firm, is set to launch a new Bitcoin (BTC) product that combines the potential gains of Bitcoin with the stability of gold. This innovative product aims to attract risk-averse investors who have been hesitant to enter the cryptocurrency market due to its volatility. The product, which will be a gold-backed Bitcoin fund, is designed to provide full participation in Bitcoin’s upside while using physical gold holdings to cushion against price drops.

Brandon Lutnick, the CEO of Cantor Fitzgerald, explained that the firm's strategy is to offer a product that appeals to institutional investors seeking inflation protection and the potential for significant returns. According to Lutnick, gold has seen a 25% increase year-to-date, which may attract investors who are looking for a more stable investment option within the crypto space. This move by Cantor Fitzgerald is significant as the firm has a long history in the crypto space, including managing Tether’s reserves, which adds credibility to their new product.

The fund is expected to launch soon and represents a new way for traditional investors to access crypto without the usual volatility. This comes at a time when crypto funds are surging, and the product is seen as a solution for diversification. The fund will offer gold-backed protection with the full upside of Bitcoin, combining crypto innovation with safe-haven assets. Cantor’s strategy specifically targets institutional investors, who have shown strong confidence in Bitcoin’s long-term future despite short-term price fluctuations.

Institutional investors have been actively increasing their Bitcoin holdings. For instance, Strategy added 4,020 BTC worth $427 million, bringing their total to 580,250 BTC. GameStop also bought 4,710 BTC after raising $1.3 billion in convertible notes and diversified its corporate treasury. Japanese firm Metaplanet announced a $21 million bond dedicated to buying Bitcoin and increased their holdings to 7,800 BTC. These strategic purchases demonstrate strong confidence in Bitcoin’s long-term future.

Meanwhile, US spot Bitcoin ETFs saw $458.82 million in inflows this week and $5.85 billion in May inflows, the highest since last December and surpassing even the post-US election levels. This indicates that Bitcoin is becoming a core asset in portfolios, further solidifying its position in the investment landscape. The technical outlook for Bitcoin shows that the BTC/USD pair is in a descending channel, with selling pressure remaining persistent. The price is below the 50-period EMA and key support is at $104,683, with further downside targets at $103,395 and $102,168. Momentum indicators are cautionary, with the MACD histogram fading and the RSI below neutral.

Despite the technical challenges, long lower wicks at support suggest buyer defense, although there is no follow-through. A break above $107,531, accompanied by bullish engulfing candles or three white soldiers, could lead to $108,221-$109,589. Conversely, a break below $104,683 with a shooting star or three black crows could result in a further decline to $103,395 or lower. The launch of Cantor Fitzgerald’s gold-backed Bitcoin fund could potentially attract billions in investment, providing a new avenue for traditional investors to enter the crypto market with reduced risk.