Bloomberg launches Gold and BTC composite index

Bloomberg has just launched two new investment indices that combine Bitcoin and Gold (BBIG and BBUG), which in fact among the first multi-active indices to combine digital assets with traditional products.

According to the Press ad February 13Bloomberg has just launched two composite indices of bitcoin and gold. The BBIG is a bitcoin and a weighted golden gold index. The BBUG index also includes the US dollar for additional protection. According to Bloomberg, customers can adjust and customize indices configuration weights.

The idea behind these new clues is to balance Bitcoin’s growth potential with Gold’s stability. “As a key investment Hurdle in Bitcoin is high volatility, we see a fundamental case for the use of bitcoin and gold, not bitcoin against gold,” said Jigna Gibb, manager of Product and crypto indexed products at Bloomberg Index Services Limited.

The development of these indices is appropriate, because bitcoin and gold reached record heights in 2024, which prompted more investors to consider them as additional assets in diversified portfolios. In addition, although bitcoin and gold have historically had a correlation almost zero with each other, they have provided positive long-term yields, making their composite index a potential diversifier for multi-network wallets.

Bbig and Bbug are not the first cryptographic indications of Bloomberg. The company too offers Bitcoin (BTC), Ethereum (Ethn), Solana (GROUND) The clues as well as the crypto index of Bloomberg Galaxy (BGCI), which follows the performance of the largest and most liquid cryptocurrencies, and the Bloomberg Galaxy DEFI index (“DEFI”), designed to measure Performances of the largest decentralized financial protocols.

Bitcoin and gold relationship

As Bloomberg noted it in the announcement of the press, Bitcoin and gold have historically had a correlation almost zero with each other. However, as an analyst of Crypto Daink notedBitcoin tends to finally follow Gold movements after the periods when they were decoupled or moved to different directions. “Whenever Gold moves from BTC, BTC plays catching up …” he said in his recent post on X.

Essentially, if gold moves considerably in a direction, Bitcoin can follow up on the step later, adjusting its price as if it “catches up” the momentum of Gold. Thus, although the correlation between bitcoin and gold can fluctuate and often be close to zero (which means no immediate relationship), it seems that Bitcoin aligns with Gold movements after a certain time, showing a latent correlation which does not appear in real time.