Bloomberg launches Bitcoin and gold indices to diversify investments
Rising interest amid new price peaks
According to a press release, the Bloomberg Bitcoin & Gold Blend Indeсes are among the first multi-asset indeсes in the market to merge commodities with digital asset components.
The new indeсes include the Bloomberg Bitcoin and Gold Equal-Weighted Index (BBIG) and the Bloomberg Dollar, Bitcoin and Gold Equal-Weighted Index (BBUG).
While BBIG is an equal-weighted index of Bitcoin and gold, BBUG also incorporates the U.S. dollar for additional protection. The concept behind these indeсes is to balance Bitcoin’s growth potential with gold’s stability.
Rising interest amid new price peaks
In 2024, investments in the crypto sector exceeded $220 billion, according to Bloomberg. These investments span over 250 ETFs, including spot Bitcoin and Ethereum funds. Both gold and Bitcoin recently hit new price peaks, fueling investor interest in exploring the complementary and competing properties of these assets in diversified portfolios.
"As elevated volatility remains a key investment hurdle for Bitcoin, we see a fundamental case for Bitcoin and gold together, rather than Bitcoin versus gold," stated Jigna Gibb, Head of Index Products for Commodities and Crypto at Bloomberg Index Services Limited.
Bitcoin and gold have historically shown nearly zero correlation but maintain positive long-term returns, making their combination a potential positive diversifier for traditional multi-asset portfolios.
Analysts have also observed that, despite the lack of immediate correlation, if gold moves significantly in one direction, Bitcoin may follow suit later, adjusting its price as if it is "catching up" to gold's momentum.
The combined Bitcoin and gold indeсes are the first in Bloomberg's set of indeсes designed to allow future modifications and adjustments to components and weighting based on client preferences.
As we wrote, Bitcoin's price remains trapped in a tight range between $95,000 and $100,000, marking eight days of consolidation after a sharp rejection from the 50-day EMA at $98,200.
