Bloomberg launches a gold and BTC composite index

Bloomberg has just launched two new investment indices that combine Bitcoin and gold (BBIG and BBUG), making them among the first perennial indices to combine digital means with traditional goods.

Toward 13. FebruaryBloomberg has just launched two composite bitcoin and gold investment indices. The BBIG is equally weighted by BitCoin and the Golden Index. The BBUG index also includes an American dollar for additional protection. According to Bloomberg, customers can customize and adjust the index configuration weight.

The idea behind these new indices is the balancing of the Bitcoin’s growth potential with gold stability. “As a key investment barrier in Bitcoin elevated coldness, we see a substantial case for use of Bitcoin and Gold, and not Bitcoin opposite gold,” JiGNA Gibb, boss products Composdine & Cripto index on Bloomberg Limited Index Limited.

The development of these indices, as well as Bitcoin and gold reached a record high eyelid in 2024. years, encouraging more investors to review them as complementary assets in diversified portfolios. Moreover, although Bitcoin and Gold historically had almost zero correlation with each other, they submitted positive long-term returns, making their composite index with a potential positive diversifier for many years of portfolios for more funds.

BBIG and BBUG are not the first crypto indices of Bloomberg. And the company also offers Bitcoin (Btc), Etherum (El), Solana (Salt) Indices as well as Bloomberg Galaxy CRIPTO index (BGCI), which accompanies the performance of the largest and highest quality cryptocurri and Bloomberg Galaxy Defiant indices (“Defial) is designed to measure the performance of the largest decentralized financing protocols.

Bitcoin and gold relationship

As Bloomberg noted in the print announcement, Bitcoin and gold had historically had almost zero correlation with each other. However, as a crypto analyst Daink point outBitcoin tends to follow the gold movements after the period when they were separated or moved in different directions. “Every time the gold displaced BTC, BTC plays caught …”, he said in his recent post in X.

Basically, if gold moves significantly in one direction, Bitcoin will be able to follow the suit later, adapting its price as if to “caught” to the golden swarm. So, while the correlation between bitcoin and gold could fluctuate and often be close to zero), the Bitcoin seems to align the gold movements after a while, showing a latent correlation that does not appear in real time.