In an interesting move, Bloomberg recently launched the Bitcoin & Gold Blend Indices. These indices include the Bloomberg Bitcoin and Gold Equal-Weighted Index and the Bloomberg Dollar, Bitcoin and Gold Equal-Weighted Index. The aim is to help institutional and retail investors diversify their investment portfolios. Bloomberg announced that in 2024, with over $220 billion in investments, it was a historic year for digital currencies. More than 250 ETFs, including those related to Bitcoin and Ethereum, have expanded access to digital currency markets. It’s worth mentioning that Bitcoin and gold reached their peak last year, strengthening the relationship between digital and physical assets. Bloomberg designed the combined Bitcoin and Gold index with a unit-centric framework to allow for future customization based on customer needs. The goal of this combined index is the growth of Bitcoin with the historical stability of gold. Jigna Gibb, Head of Commodity and Digital Currency Index Products at Bloomberg, stated, ‘We expect the Bloomberg Bitcoin and Gold blend to be the first example of commodity and digital asset combinations, as we see increased investor interest in customized indices.’ Digital currency analyst Daink also believes that Bitcoin and gold are not completely independent. He stated that Bitcoin tends to follow gold’s movements after periods of divergence. Overall, Bloomberg has provided a tool for combining traditional and digital assets by introducing this index.
