Bloomberg has launched two new investment indices—BBIG and BBUG—that combine Bitcoin (BTC) and Gold, marking a significant step in merging digital assets with traditional commodities.
According to a February 13 press announcement, the indices aim to balance Bitcoin’s growth potential with Gold’s stability, providing investors with diversified exposure.
Details of the BBIG and BBUG Indices
- BBIG Index: An equal-weighted Bitcoin and Gold index.
- BBUG Index: Includes Bitcoin, Gold, and the U.S. Dollar for added stability.
Bloomberg’s Head of Commodities & Crypto Index Products, Jigna Gibb, explained the rationale behind these indices:
“As a key investment hurdle in Bitcoin is elevated volatility, we see a fundamental case for using Bitcoin and Gold, not Bitcoin versus Gold.”
These indices arrive at a time when both Bitcoin and Gold have reached record highs in 2024, leading investors to consider them as complementary assets in diversified portfolios.
Bitcoin and Gold: A Dynamic Relationship
Historically, Bitcoin and Gold have shown nearly zero correlation, meaning their prices do not move in sync. However, some analysts argue that Bitcoin tends to follow Gold’s movements over time.
Crypto analyst Daink highlighted this trend:
“Each time Gold displaces away from BTC, BTC plays catch-up.”
This suggests that Bitcoin’s price may adjust to match gold’s momentum, even if their immediate correlation remains low.
Bloomberg’s Expanding Crypto Index Offerings
BBIG and BBUG add to Bloomberg’s existing crypto index portfolio, which includes:
- Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) indices
- Bloomberg Galaxy Crypto Index (BGCI), tracking the largest and most liquid cryptocurrencies
- Bloomberg Galaxy DeFi Index (DEFI), measuring the performance of leading decentralized finance protocols
With these new indices, Bloomberg is expanding the role of Bitcoin and Gold as integrated financial assets. By offering a composite investment solution, the company is providing investors with alternative strategies for navigating volatile markets while maintaining portfolio stability.
