Wall Street’s Latest Crypto Play: Cantor Fitzgerald Bets Big on Gold-Backed Bitcoin Fund

Another day, another institutional crypto product—but this one’s got a shiny twist. Cantor Fitzgerald, the financial giant that somehow survived both the 2008 crash and its own hubris, is rolling out a Bitcoin fund hedged with gold. Because nothing says ’trustless asset’ like layering it with a 5,000-year-old store of value.

Gold meets code: The fund aims to lure crypto-skeptical boomers and inflation-paranoid hedge funds by pairing Bitcoin’s volatility with gold’s glacial stability. It’s the financial equivalent of putting a Lamborghini engine in a tank—questionable, but undeniably interesting.

Timing is everything: Launching mid-2025, the fund drops as Bitcoin flirts with new highs and gold hits record demand. Cantor’s move? Either a masterstroke of diversification or a desperate hedge against their own bond portfolio. Place your bets.

Fund Would Address Investors’ Fears Over Bitcoin’s Sudden Price Drops

At Cantor, we are focused on delivering innovative products that support clients seeking exposure to digital asset investments,” said Brandon G. Lutnick, Chairman of Cantor Fitzgerald.

He called it a “ground breaking investment vehicle” that helps investors tap into Bitcoin’s potential growth with downside protection based on the price of gold.

Speaking at the conference, Lutnick addressed investors, noting that the fund Balances Bitcoin’s volatility with the precious metal’s stability.

“There are still people on the earth that are scared of Bitcoin, and we want to bring them into this ecosystem,” he said.

The fund will be available to investors in the coming weeks, the company added.

Cantor Launches $2B Bitcoin-Backed Lending Initiative

The gold-hedged bitcoin fund launch follows Cantor’s official launch of a $2 billion Bitcoin-backed lending with first loans.

Today Cantor Fitzgerald Asset Management announced plans to launch a Gold Backed Bitcoin Fund, the business’s first Bitcoin-focused investment vehicle. The Fund will combine direct Bitcoin exposure with downside protection based on the price of gold. Read the release and stay… pic.twitter.com/oVexIJC9lf

The investment bank announced early this week that the lending initiative will provide financing to crypto firms FalconX Ltd. and Maple Finance.

Cantor has launched a string of crypto-focused ventures in the past. An affiliate of the investment bank in April teamed up with Tether Holdings and SoftBank Group to launch Bitcoin accumulator Twenty One Capital Inc.

Following a string of corporate implosions in 2022, including Celsius and BlockFi, there has been a surge in crypto-backed lending. For instance, in March, Bitcoin software firm Blockstream Corp. secured a multi-billion dollar investment in its crypto lending funds.

David Mercer, chief executive of the institutional trading platform LMAX Group, told Bloomberg that the new lenders will be “much more institutional in nature.”

“More banks will enter the space and provide credit mechanisms to some of the largest institutions you can imagine to trade these assets.”