Bloomberg Introduces Bitcoin & Gold Blend Indices to Bridge Digital and Physical Assets

The Bloomberg Bitcoin & Gold Blend Indices are one of the first multi-asset indices to combine commodities and digital assets. The Bloomberg Dollar, Bitcoin, and Gold Equal-Weighted Index (BBUG) and the Bloomberg Bitcoin and Gold Equal-Weighted Index (BBIG) are two of the recently introduced indices.

After 2024 was a big year for cryptocurrencies, Bloomberg data indicates that more over $220 billion in investments were driven by regulatory clarity and optimistic optimism. The expansion of access to digital assets was largely facilitated by more than 250 ETFs, including spot Bitcoin and Ethereum funds. Both gold and bitcoin reached all-time highs, highlighting their value as supplementary assets in diversified portfolios.

Balancing Growth and Stability in Investments

These indices aim to harness Bitcoin’s rapid growth alongside gold’s long-standing stability. The BBIG Index tracks an equal-weighted mix of Bitcoin and gold, while the BBUG Index adds the U.S. Dollar to the blend. This approach leverages Bitcoin and gold’s historically low correlation while maintaining positive long-term returns.

Jigna Gibb, Head of Commodities & Crypto Index Products at Bloomberg Index Services Limited, highlighted the growing demand for such investment strategies.

“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. With Bloomberg Indices’ capabilities, we’re able to continuously customize index offerings as the industry evolves. As a key investment hurdle in Bitcoin is elevated volatility, we see a fundamental case for using Bitcoin and Gold, not Bitcoin versus Gold.”

By introducing these indices, Bloomberg offers investors a new way to manage risk while capitalizing on digital and traditional assets’ unique strengths.