Financial Insights That Matter
Bloomberg’s New Bitcoin & Gold Blend Indices Expand Access to Emerging Asset Class
Coupling volatile and stable assets offers new diversifier for traditional multi-asset portfolios
NEW YORK, Feb. 13, 2025 /PRNewswire/ — Bloomberg announced today the launch of the Bloomberg Bitcoin & Gold Blend Indices, some of the first multi-asset indices to market that combine commodities and digital assets components. The new indices include the Bloomberg Bitcoin and Gold Equal-Weighted Index (BBIG), and the Bloomberg Dollar, Bitcoin and Gold Equal-Weighted Index (BBUG).
After a landmark year for cryptocurrencies in 2024, the impact of favorable regulations and sentiment shepherded in over $220bn in crypto investments according to Bloomberg data. These assets were across 250+ ETFs, including those linked to spot Bitcoin and spot Ethereum which expanded access to crypto markets using a familiar wrapper. Gold and Bitcoin both reached new peaks over the year, further bonding the relationship between digital and physical assets, and investors began to explore their competing and complementary attributes in diversified portfolios.
Bitcoin and Gold blends are the first in this set of indices, developed with a unit-based framework allowing for future modification and customization of building blocks and weight based on client interest. These indices aim to capture Bitcoin‘s growth, coupled with Gold’s historic stability. The BBUG Index combines the U.S. Dollar’s defensive attributes with Bitcoin and Gold’s potential, long-term uncorrelated characteristics. Bitcoin and Gold have historically a nearly zero correlation with each other but maintain positive long-term returns making their basket a potential positive diversifier to traditional multi-asset portfolios.
“We expect the Bloomberg Bitcoin and Gold basket to be the first of many commodities and digital asset blends as we see an increasing investor appetite for tailored indices that can target specific investment objectives and return profiles,” said Jigna GigHead of Commodities & Crypto Index Products at Bloomberg Index Services Limited. “With Bloomberg Indices’ capabilities, we’re able to continuously customize index offerings as the industry evolves. As a key investment hurdle in Bitcoin is elevated volatility, we see a fundamental case for using Bitcoin and Gold, not Bitcoin versus Gold.”
Bloomberg provides an independent, transparent approach to indexing for customers across the globe. Bloomberg clients can access the new indices on the Bloomberg Terminal at {IN BDXY
About Bloomberg Index Services Limited
Bloomberg’s index team has a proven track record in creating industry-leading and bespoke indices across asset classes, including their flagship fixed income, commodity and equity indices. Bloomberg Index Services Limited (BISL) takes an innovative approach to delivering strategic benchmarks that help market participants address their evolving investment needs. The indices, which are seamlessly integrated with other Bloomberg solutions, draw on a comprehensive range of trusted data and reliable technology for calculations, analytics and workflow automation, along with distribution capabilities that can help amplify the visibility of our customers’ products. For more information, visit www.bloombergindices.com.
About Bloomberg
Bloomberg is a global leader in business and financial information, delivering trusted data, news, and insights that bring transparency, efficiency, and fairness to markets. The company helps connect influential communities across the global financial ecosystem via reliable technology solutions that enable our customers to make more informed decisions and foster better collaboration. For more information, visit Bloomberg.com/company or request a demo.
SOURCE Bloomberg L.P.
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