New crypto fund unveils innovative investment strategy: 'Tackles both risks head-on'

A new cryptocurrency-focused fund with major Wall Street backing recently went public. Its goal is to provide financial safety where its backers perceive traditional markets will not.

Introduced in May and backed by company CEO (and U.S. Commerce Secretary) Howard Lutnick, the Cantor Fitzgerald Gold Protected Bitcoin Fund aims to "[mitigate] the risk of short-term volatility and [limit] the effects of correlation spikes while still participating in the long-term upward trend of Bitcoin," according to TheStreet.

"This gold-protected Bitcoin strategy spans five years and tackles both risks head-on," said Bill Ferri, the global head of Cantor Fitzgerald asset management. "It captures Bitcoin's upward trajectory while gold provides a safety net that historically performs well when markets decline … with risk assets at or near all-time highs, timing and protection matter."

Ferri also specified that Cantor Fitzgerald sees the fund as "an appropriate hedge in over-inflated markets," as TheStreet explained.

The viability of cryptocurrency remains a contentious topic, with both sides of the debate firm in their convictions. From an environmental perspective, the two sides of the coin are almost intertwined. On one hand, some energy companies are starting to invest in crypto in an effort to provide power in an environmentally conscious manner. Bitcoin is also now receiving more than half of its energy from sustainable sources.

That being said, there are mountains of evidence linking crypto operations to significant environmental harm (and even human health problems).

This is not to say that crypto is inherently good or evil — at this moment, it's still a relatively emerging market and technology, and its full capabilities are likely still undiscovered to some degree.

Though its success as a stable coin is far from guaranteed, cryptocurrency is nevertheless likely here to stay. As such, it makes sense that companies across all industries, from finance to the environment, are trying to figure out how or if they can best utilize it.

Given that its drawbacks are glaring, it's understandable there are concerns about widespread investment in crypto. But with so much ongoing research on the currency, it's possible that economists and scientists will soon find out-of-this-world uses for it. In the meantime, it is worth being cautious of confirmation bias.

What do you think the future of cryptocurrency is?

It is the future of currency 😎