Bloomberg launched only two new investment indices that combine bitcoins and gold (BBIG and BBUG), which make them one of the first multi-primary indices to combine digital assets with traditional items.
As February 13 press announcementBloomberg launched only two overall bitcoins and gold investment index. Bbig is a uniform-loving bitcoin and gold index. The BBUG index also includes US dollars for additional security. According to Bloomberg, customers can accommodate and adapt to the configuration weight of indices.
The idea behind these new indices is to balance the growth potential of bitcoin with the stability of gold. Jigna Gibb, head of Commodities and Crypto Index Products at Bloomberg Index Services Limited, said, “A major investment barrier in bitcoin has been increased, we see a fundamental case to use bitcoin and gold, not bitcoin vs. Gold. ”
The development of these indices is on time, as both bitcoin and gold reached a record high in 2024, inspiring more investors to see as a complementary property in diverse portfolio. Furthermore, although bitcoin and gold historically have almost corrected with each other, they have given positive long-term returns, making their overall index a potential positive variator for multi-proclaiming portfolio.
BBIG and BBUG are not the first crypto index by Bloomberg. Company too Offer Bitcoin (BTC), Etherem (Ath), Solna (Sol) with indices -Bloomberg Galaxy Crypto Index (BGCI), which tracks the performance of the largest and most liquid cryptocurrency, and Bloomberg Galaxy Defax (“DEFI” ), Designed to measure the performance of the largest decentralized finance protocols.
Bitcoin and Gold Relationship
As Bloomberg mentions the press announcement, Bitcoin and Gold historically have almost zero correlation with each other. However, as Crypto’s analyst Danoc reported, Bitcoin eventually follows gold movements after periods when they are decourse or transferred in different directions. “Every time gold is displaced away from BTC, BTC caught …” he said in his recent post on X.
Essentially, if the gold moves significantly in one direction, the bitcoin can follow the suit later, adjusts its price such as it is “catching” for the speed of gold. Therefore, while there may be fluctuations in the relationship between bitcoin and gold and often near-zero (meaning not immediate relationship), it seems that bitcoin aligns with gold movements after a time, a latent The correlation shows which does not appear in real time.
