Wall Street asset management giant Cantor Fitzgerald is set to release its first-ever Bitcoin-focused investment product that blends the flagship cryptocurrency’s upside with downside protection based on the price of gold.
The fund, dubbed the “Gold Protected Bitcoin Fund,” was announced by Cantor CEO Brandon Lutnick at the Bitcoin 2025 conference in Las Vegas, Nevada.
“We are launching a gold-backed Bitcoin fund with the idea that there are still people on the earth who are scared of Bitcoin, and we want to bring them into this ecosystem,” he said during a fireside chat.
What is Cantor Fitzgerald’s Gold-Protected Bitcoin Fund?
Speaking at the venue, the 27-year-old son of former Cantor CEO and now-US Secretary of Commerce, Howard Lutnick, said that the vehicle is designed to balance Bitcoin’s volatility with the precious metal’s relative stability, giving investors full exposure to BTC gains while leveraging gold to hedge against potential losses. Moreover, it aims to address the concerns of investors who are fearful of the cryptocurrency’s frequent dramatic price declines.
As per a statement from the asset manager, the fund will run for five years and promises to deliver uncapped upside when Bitcoin’s price rallies, while providing a 1:1 downside protection based on the price of gold to protect investors when BTC tumbles. This means the value of Cantor’s Gold Protected Bitcoin Fund holdings of the precious metal will help offset any drop in Bitcoin’s price.
The gold-backed Bitcoin investment product is expected to begin accepting investor capital in the coming weeks.
Investors are Increasingly Shifting Capital from Gold to Bitcoin
Cantor Fitzgerald’s new crypto fund comes at a worrying time for the gold market, when money is quickly flowing out of gold into Bitcoin.
According to Bloomberg data, US-listed spot Bitcoin exchange-traded funds (ETFs) attracted more than $9 billion in inflows throughout May 2025. For comparison, during that time, ETFs tracking the price of gold have experienced $2.8 billion in outflows.
Bitcoin registered a new all-time high of $112,000 in the same month. This rally was driven by catalysts such as record inflows into the spot Bitcoin ETFs, increased corporate Bitcoin treasury adoption, and macroeconomic uncertainty.
Gold rose to its all-time high of $3,500 per ounce in April 2025, fueled by investors quickly offloading risk assets like crypto and equities for precious metals on the back of the ongoing trade war led by US President Donald Trump, and China increasing its gold reserves in response to tariffs on the country. While gold is up 25% this year, it has pulled back considerably from its peak valuation.
Some financial analysts are starting to believe that Bitcoin is eroding the favorability of gold in investor portfolios as a hedge against fiat currency debasement. Others highlighted that the apex crypto asset is increasingly becoming less tied to traditional markets and is paving its path. Bitcoin’s recent intraday correlation with the Nasdaq, the US dollar, and even gold has been remarkably low, a trend observed since the start of 2025.
According to recent analysis, the 120-day correlation between Bitcoin and gold has dropped from about 0.5 in November 2021 to almost zero. Several factors contribute to this decoupling, like BTC’s price becoming more dependent on crypto-specific headlines around adoption and regulation, while the price of gold is susceptible to changes in the yield available on safe government bonds.
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Final Thoughts: The Case for Cantor’s Bitcoin Investment Fund
Cantor Fitzgerald’s Gold-Protected Bitcoin Fund is tailor-made for investors who want regulated exposure to Bitcoin’s price potential without taking on all the volatility that typically comes with it.
The vehicle is an unusual pairing, but one that signals how the world of traditional finance is evolving to meet the growing interest from conservative investors in crypto assets, especially Bitcoin.