Bloomberg has launched two new indices that combine bitcoin and gold, so investors can track both digital and traditional assets.
The new indices, the Bloomberg Bitcoin and Gold Equal-Weighted Index (BBIG) and the Bloomberg Dollar, Bitcoin, and Gold Equal-Weighted Index (BBUG), balance bitcoin’s growth with gold’s stability.
This is a big step in the evolution of investment tools. Bloomberg created them to help investors monitor bitcoin and gold in one metric, so they can include digital assets in their traditional portfolios. The BBUG index also includes the US dollar.
Jigna Gibb, Head of Commodities & Crypto Index Products at Bloomberg Index Services Limited, explained:
“As a key investment hurdle in Bitcoin is elevated volatility, we see a fundamental case for using Bitcoin and gold, not Bitcoin versus gold.”
Bitcoin and gold are seen as alternative stores of value but their prices have shown little correlation — they don’t move in the same direction at the same time.
But analysts have noticed a trend: Bitcoin follows gold’s price after a period of divergence. Daink said, “Each time gold displaces away from BTC, BTC plays catch up.” So while not directly linked, bitcoin may align with gold’s price trends.
By combining both assets in one index, Bloomberg gives investors exposure to bitcoin’s growth while benefitting from gold’s long-term stability. This could be a diversification strategy for multi-asset portfolios.
The timing of this introduction is interesting. Both bitcoin and gold hit all-time highs in 2024. The digital asset sector saw over $220 billion invested in more than 250 ETFs, including those on spot bitcoin.
As more institutional investors get into bitcoin, Bloomberg’s move is a sign of growing acceptance of the scarce digital asset in traditional markets. The indices also allow investors to customize the weight of each asset so they’re flexible for different investment strategies.
Related: Gold and Bitcoin | A New ETF Offers Combined Investment Opportunities
BBIG and BBUG are part of Bloomberg’s overall digital asset investment tools, and this is Bloomberg’s first hybrid investment tracking – digital assets and commodities in one tool.
The financial industry is showing interest in multi-asset indices that combine digital assets with traditional investments. Bloomberg’s new ones are independent and transparent so investors can get some stability in the volatile bitcoin market.
Jigna Gibb said more could follow. “We expect the Bloomberg Bitcoin and Gold basket to be the first of many commodities and digital asset blends as we see an increasing investor appetite for tailored indices that can target specific investment objectives and return profiles.”
