TLDR
Bloomberg launched two new composite indices (BBIG and BBUG) combining Bitcoin and Gold, with BBUG also including USD
The indices allow customers to customize asset weight configurations to match their investment preferences
BBIG provides equal weighting between Bitcoin and Gold, aiming to balance growth potential with stability
Both Bitcoin and Gold hit record highs in 2024, leading investors to view them as complementary portfolio assets
While Bitcoin and Gold historically show near-zero correlation, analysis suggests Bitcoin tends to follow Gold’s movements after periods of decoupling
Bloomberg has launched two groundbreaking investment indices that combine Bitcoin and Gold, marking a new chapter in the evolution of multi-asset investment tools. The company announced on February 13, 2025, the creation of BBIG and BBUG indices, designed to track the performance of both digital and traditional assets in a single metric.
The BBIG index maintains an equal weighting between Bitcoin and Gold, providing investors with exposure to both assets simultaneously. Its companion index, BBUG, adds an extra layer by incorporating the U.S. Dollar, offering additional protection for investors seeking more stability in their portfolio tracking.
Bloomberg’s new indices come with built-in flexibility, allowing customers to modify the weight configurations according to their investment strategies. This customization feature enables investors to adjust their exposure to each asset based on market conditions and risk preferences.
Jigna Gibb, Head of Commodities & Crypto Index Products at Bloomberg Index Services Limited, explained the reasoning behind combining these assets. “As a key investment hurdle in Bitcoin is elevated volatility, we see a fundamental case for using Bitcoin and Gold, not Bitcoin versus Gold,” Gibb stated in the announcement.
The timing of this launch aligns with market developments, as both Bitcoin and Gold achieved record prices in 2024. This parallel success has led more investors to consider these assets as complementary rather than competing investments within diversified portfolios.
Bitcoin & Gold Analysis
Historical data shows that Bitcoin and Gold have maintained nearly zero correlation with each other over time. However, this lack of immediate correlation comes with an interesting pattern: Bitcoin often follows Gold’s price movements after periods of disconnection.
Crypto analyst Daink highlighted this relationship on social media platform X, noting that “Each time Gold displaces away from BTC, BTC plays catch up.” This observation suggests a delayed alignment between the two assets, even though their real-time correlation remains minimal.
Key Notes
– Gold making new ATHs forming HHs and HLs– $BTC range bounding between 91k – 105k
Each time Gold displaces away from BTC, BTC plays catch up as highlighted in black circles pic.twitter.com/IcrxJINCIf
— Daink (@TraderDaink) February 10, 2025
These new indices join Bloomberg’s existing cryptocurrency tracking tools. The company already offers individual indices for Bitcoin, Ethereum, and Solana, as well as the Bloomberg Galaxy Crypto Index (BGCI) and the Bloomberg Galaxy DeFi Index (DEFI).
The BGCI tracks the performance of major liquid cryptocurrencies, while the DEFI index monitors the activity of leading decentralized finance protocols. These existing products demonstrate Bloomberg’s ongoing commitment to providing comprehensive crypto market tracking tools.
The introduction of BBIG and BBUG represents Bloomberg’s first venture into combining traditional commodities with digital assets in a single index. This approach offers investors a new way to track both markets through a unified metric.
Despite their different characteristics, both Bitcoin and Gold have delivered positive long-term returns. This track record suggests that their combination in a single index could serve as an effective diversification tool for multi-asset portfolios.
The customizable nature of these indices allows investors to adapt their exposure based on market conditions. Users can adjust the weighting of each component to match their risk tolerance and investment goals.
Bloomberg’s decision to launch these indices reflects the growing acceptance of cryptocurrencies alongside traditional assets in investment portfolios. The move provides institutional investors with new tools for tracking combined performance.
The company’s expansion into hybrid indices bridges the gap between conventional and digital investment vehicles. This development offers market participants new options for monitoring mixed-asset exposure.
The launch of BBIG and BBUG adds to Bloomberg’s range of investment tracking tools, expanding the options available to investors interested in both cryptocurrency and traditional commodities markets.
