Cantor to Unveil a New Bitcoin Product—With a Little Gold Insurance
In brief
- Wall Street giant Cantor Fitzgerald is going to introduce a Bitcoin-focused fund with with downside protection based on gold's price.
- The fund aims to address some investors' fears about Bitcoin's volatility.
- Cantor has been vocal in its embrace of cryptocurrency investment products.
Wall Street giant Cantor Fitzgerald is debuting a new Bitcoin-focused fund with downside protection based on the price of gold, the financial services firm announced Thursday.
Speaking later in the day at the Bitcoin 2025 conference in Las Vegas, Nevada, Cantor CEO Brandon Lutnick said that by balancing Bitcoin's volatility with the precious metal's relative stability, the fund would address investors fearful of the cryptocurrency’s frequent dramatic price drops.
"We are launching a gold-backed Bitcoin fund with the idea that there are still people on the earth that are scared of Bitcoin, and we want to bring them into this ecosystem," he said.
He added: "We are going to provide them upside while giving them downside protection secured by physical gold."
A statement from the firm said the fund "aims to deliver uncapped upside participation in Bitcoin, while providing 1-to-1 downside protection based on the price of gold."
It will be available to investors in the coming weeks, the firm said but did not specify a date.
Bitcoin has risen nearly 14% this year and investors in recent days have treated it increasingly as a risk-off asset. But its path upward has included multiple drops. It rose to a record $109,000 in mid January around the time of U.S. President Donald Trump’s inauguration, sank below $75,000 in April and set a new all-time high earlier this month above $112,000 before retreating over the past few days to its current level below $106,500.
Gold has been steadier and is up more than 25% in 2025, trading above $3,340. It set a record high near $3,450 per ounce in April and is currently trading at about $3,300.
Crypto-focused funds have been among the fastest-growing with 11 spot Bitcoin exchange-traded funds that began trading only last year generating more than $45 billion in assets, according to data from U.K. asset manager Farside Investors.
The popularity of those funds, which are based on the ongoing performance of BTC, have helped spawn a flurry of products and proposed funds based on altcoins. Spot Ethereum funds have received more than $2.9 billion in net investments.
Cantor was among the early, vocal Wall Street supporters of Bitcoin. The firm helps custody the Treasury reserves for stablecoin giant Tether's USDT product.
Brandon Lutnick spoke with Tether's CEO Paolo Ardoino at Bitcoin 2025, praising the stablecoin's "real-world use cases."
Edited by James Rubin
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