##  [# Bitcoin, S&P Mix in New ETF Aimed at Easing Crypto's Wild Ride](/sections/news/bitcoin-sp-mix-new-etf-aimed-easing-cryptos-wild-ride) 

 

# Bitcoin, S&P Mix in New ETF Aimed at Easing Crypto's Wild Ride

 

 

Cyber Hornet's new product offers BTC's potential for gains with the stability of the S&P stock index.



 

 

 

 

 [![Jeff_Benjamin](/sites/default/files/styles/author_image_icon/public/2023-08/Jeff_Benjamin_author.png?itok=-fUp7EJP "Jeff_Benjamin")](/authors/jeff-benjamin) 

[By Jeff Benjamin](/authors/jeff-benjamin)

 Jan 05, 2024

 Edited by: ETF.com Staff

 

 

 [ + Follow ](/etf/login) 

     Share  <a class="a2a a2a_button_email"> Email </a><a class="a2a a2a_button_linkedin"> LinkedIn </a><a class="a2a a2a_button_facebook"> Facebook </a><a class="a2a a2a_button_x"> X (Twitter) </a> 

 

 

 

 

 

 

 

 

  
            googletag.cmd.push(function() {
                googletag.display('js-dfp-tag-article_page_302x26');
            });
    
    

 

 

  

 



 

 

  Loading 

 

 



 

 

As investors await an SEC ruling on a dozen ETF filings, at least one issuer has found a unique opening on the crypto bandwagon.

Launched on the last trading day of 2023, the [**Cyber Hornet S&amp;P 500 and Bitcoin 75/25 Strategy ETF (ZZZ)**](https://www.etf.com/ZZZ) pairs the [performance potential](https://www.etf.com/sections/etf-watch/bitcoin-fever-made-crypto-etfs-2023s-best-performers) of bitcoin with the stability of the world’s most popular equity index.

The fund has dropped to $20.55 since it began trading last week at $20.85 on the Nasdaq exchange. According to issuer Cyber Hornet ETFs’ [fund page](https://www.cyberhornetetfs.com/index.html), ZZZ has $1.03 million in assets under management.

Michael Willis, co-founder and chief executive of Cyber Hornet ETFs, said the idea for the ETF was sparked in June when [BlackRock Inc.,](https://www.etf.com/sections/news/blackrock-updates-spot-bitcoin-etf-application) the world’s largest asset manager, joined the party by filing for a spot bitcoin fund.

“We believe the BlackRock filing officially launched the bitcoin era on Wall Street, because with a spot bitcoin ETF, investors will have access to bitcoin in a very simple way,” Willis said.

The exchange-traded fund is the first from [Cyber Hornet ETFs,](https://www.cyberhornetetfs.com/about.html) in what the company says will be a four-fund suite offering a range of ratios blending the S&amp;P with bitcoin futures contracts.

## **Bitcoin Exposure Without the Wild Ride**

Currently, the closest thing to bitcoin exposure in an ETF wrapper is a handful of funds that invest in bitcoin futures contracts.

The Securities and Exchange Commission (SEC) is set to approve or deny the [first spot bitcoin](https://www.etf.com/sections/webinars/long-journey-spot-bitcoin-etf) filing, with a ruling expected by Jan. 10. Scenarios include [approval](https://www.etf.com/sections/news/will-spot-bitcoin-etf-kill-2b-crypto-futures-funds) of a single applicant’s fund, to simultaneous approval of multiple applications, to denial or further delay.

Willis believes his strategy carves out a niche for investors and financial advisors who might want exposure to the cryptocurrency space, but without the trademark extreme volatility.

In a rudimentary back test, pairing a 75% weighting in the S&amp;P 500 with a 25% allocation to bitcoin futures contracts that are rebalanced monthly, the new ETF appears as a decent compromise for nervous investors.

In 2014, for example, when the S&amp;P was up 13.4% and bitcoin fell 58.4%, the 75/25 model would have lost 7.6%.

In 2022, when correlation was punishing virtually across the board leading to an 18.1% loss for the S&amp;P and a 64.3% decline for bitcoin, the 75/25 strategy would have lost 31.3%. Not great news for investors, but possibly easier to stomach than a pure-play 64% drop.

In years when bitcoin has rallied, the story of smoother returns is similar.

Bitcoin jumped by 305% in 2020, while the S&amp;P gained 18.3%, which would have pushed the 75/25 strategy up 68%.

 “We don’t think people can handle 60% or 70% drops, but we think this will open up to a much wider audience of crypto investors,” Willis said. “We can go to advisors and say we have a turnkey ETF solution to meet client demand for bitcoin.”

*Contact Jeff Benjamin at* [*Jeff.Benjamin@etf.com*](mailto:Jeff.Benjamin@etf.com) *and find him on X at @BenjiWriter*

 
            googletag.cmd.push(function() {
                googletag.display('js-dfp-tag-in_article_unit');
            });
    
    

 

 



 

 

 [ + Follow ](/etf/login) 

 [ Jeff Benjamin Wealth Management Editor ](/authors/jeff-benjamin) 

 

 

  Jeff Benjamin is the wealth management editor at etf.com, responsible for coverage related to the financial planning industry. This includes writing,…   [View Bio](/authors/jeff-benjamin)

 



 

 


 Related Topics  [Bitcoin](http://www.etf.com/topics/bitcoin) 

 [S&amp;P 500 Spot](http://www.etf.com/topics/sp-500-spot) 

 [Crypto](http://www.etf.com/topics/cryptocurrency)