IDX’s Gold & Bitcoin ETF filing offers synthetic exposure, aligning with FHFA’s approval of crypto mortgages, boosting digital asset adoption.
A combined Gold and Bitcoin ETF was lodged by asset manager IDX on Wednesday, shortly following the approval of crypto mortgages by the U.S. Federal Housing Finance Agency (FHFA). The IDX Alternative FIAT ETF, as it is known, is designed to provide investors with exposure to various digital assets, with a particular emphasis on Bitcoin and Gold. In 2025, both asset classes have generated robust returns, rendering them the most effective hedge against market volatility despite the current global market uncertainty.
The IDX Gold and Bitcoin ETF takes on derivatives exposure
The primary objective of the IDX Alternative FIAT ETF is to offer exposure to a combination of gold and digital assets, with a particular emphasis on Bitcoin and gold. While providing a balanced allocation between two assets, it implements a dynamic asset allocation strategy predicated on risk metrics such as momentum and volatility. This announcement is made in the context of substantial Bitcoin ETF inflows over the past two months, underscoring the increasing institutional involvement.
The fund primarily invests in futures and other financial instruments that provide direct or synthetic exposure to these core assets rather than obtaining direct exposure to digital assets such as Bitcoin, Ether, Solana, or XRP. Therefore, IDX will depend on exchange-traded products (ETPs), futures, options, swaps, and other derivatives that provide exposure to these assets.
The IDX Alternative FIAT ETF concentrates on BTC and Gold, as evidenced by the SEC filing. The allocation to related assets, such as Ether, silver, gold mining equities, and blockchain infrastructure companies, is restricted to 40%. IDX collectively refers to them as “Reference Assets.”
The fund endeavors to attain 1.25x leveraged exposure under normal circumstances, guaranteeing that a minimum of 80% of its net assets are allocated to instruments associated with gold and Bitcoin. Michael Saylor’s Strategy has also reported that there has been a recent increase in the demand for Bitcoin-backed fixed-income assets.
Bitcoin ETF Inflows Continue to Increase
This week, spot Bitcoin ETFs have experienced a significant increase in inflows, with an additional $500 million in inflows recorded on Wednesday. The ETF market has maintained an extraordinary momentum, with net inflows comprising nearly $4 billion in new capital over the course of 12 consecutive days. The category has garnered nearly $50 billion in total inflows since its inception in January 2024.
Realization of Crypto Mortgages in the United States
The U.S. Federal Housing Finance Agency (FHFA) issued a groundbreaking directive on Wednesday that mandates the inclusion of cryptocurrencies, such as Bitcoin, in mortgage asset evaluations. A borrower’s reserve calculations can now incorporate cryptocurrency holdings on U.S.-regulated centralized exchanges without necessitating conversion to U.S. dollars under the new policy.
This represents a substantial change, as digital assets were previously excluded from mortgage risk assessments. The FHFA aims to broaden the scope of assets assessed when determining a borrower’s eligibility by incorporating Bitcoin and other cryptocurrencies. This development was well-received by industry luminaries such as Michael Saylor and others.
