As a part of its diversification strategy, Bloomberg has unveiled Bloomberg Bitcoin and Gold Blend Indices to combine commodities and Bitcoin assets. The new indices include the Bloomberg Bitcoin and Gold Equal-Weighted Index (BBIG), and the Bloomberg Dollar, Bitcoin and Gold Equal-Weighted Index (BBUG)
Bloomberg’s Bitcoin and Gold Indices Launch
The launch comes hot on the heels of an impressive year for the cryptocurrency market in 2024, which saw a surge of over $220 billion in investments, driven by favorable regulations, growing investor sentiment and hopes for a conducive business environment under US President Donald Trump.
According to Bloomberg data, this influx of capital flowed through more than 250 exchange-traded funds (ETFs), many of which provided access to spot Bitcoin and Ethereum. These developments reflect a deepening connection between digital and cryptocurrency assets, as both Bitcoin and Gold reached new price highs last year, strengthening their role in diversified portfolios.
According to an official statement, the Bitcoin and Gold Blend Indices are designed to capture Bitcoin’s growth potential and Gold’s historical stability. With Bitcoin’s well-known volatility, Bloomberg sees the combination of the two assets as a way to mitigate risk, while offering investors exposure to both markets. Bloomberg’s indices also aim to provide flexibility for customization, allowing investors to adjust the weight of each asset based on their preferences.
Jigna Gibb, Head of Commodities & Crypto Index Products at Bloomberg stated, “We expect the Bloomberg Bitcoin and Gold basket to be the first of many commodities and digital asset blends. As demand grows for more tailored indices, we aim to create solutions that address specific investment goals, especially in light of Bitcoin’s elevated volatility.”
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