Inside Bitwise’s bet on the debasement trade with Bitcoin-gold ETF

ambcrypto2026-01-24 tarihinde yayınlandı2026-01-24 tarihinde güncellendi

Özet

Despite recent underperformance compared to gold, asset managers like Bitwise believe Bitcoin remains a crucial hedge against currency devaluation and fiscal debt. This has led to the launch of the Bitwise Proficio Currency Debasement ETF (BPRO), a combined Bitcoin-gold ETF designed to capitalize on the "debasement trade" narrative. The fund aims to protect investors from the erosion of purchasing power caused by expanding money supply and rising U.S. debt, which now nears $40 trillion. The ETF garnered significant interest, with $13.2 million in trading volume and $52.4 million in assets under management on its first day. Bitwise's internal data indicates strong institutional demand for such alternative hedges, ranking second only to stablecoins. However, the short-term correlation between Bitcoin and gold has recently been negative, with gold surging 78% over the past year while Bitcoin declined 14%. Despite attempts to revert to a positive correlation in 2026, this decoupling has persisted, exacerbated by recent geopolitical tensions and macroeconomic instability. Nonetheless, Bitwise and its competitors are moving forward, betting on the long-term viability of the debasement trade.

Despite underperforming gold for the past few months, asset managers still believe that Bitcoin is a hedge against currency devaluation and fiscal debt.

And this belief has led Bitwise to unveil a combined Bitcoin gold ETF – Bitwise Proficio Currency Debasement ETF (BPRO). This is meant to offer investors exposure to the so-called “debasement trade.”

The trade is a narrative that the demand for safe havens like gold, silver, and Bitcoin will increase as U.S fiscal debts and subsequent currency devaluation slash purchasing power and wealth.

Bitwise CIO Matt Hougan echoed the same, adding that this “hard asset approach” is the missing piece in the portfolio. Especially since traditional stocks and ETFs haven’t helped preserve wealth amid rapid money supply expansion. He added,

“By combining the historical scarcity of gold with the modern, digital scarcity of Bitcoin, BPRO offers a powerful new way to hedge against the persistent decline of fiat currency.”

Bitwise’s BTC-gold ETF hits $13M on day 1

The firm highlighted that U.S debt increased to close to $40 trillion, and the U.S dollar’s purchasing power dropped by 40% over the past two decades – Reinforcing currency ‘debasement’ as a real risk.

Bitwise’s move came a few days after rival asset manager 21Shares launched a similar product.

The BPRO product saw $13.2 million in trading volume and $52.4 million in assets under management (AUM) on day 1, underscoring interest in the “debasement trade.”

In fact, the asset manager’s latest survey showed that alternative hedges against fiat debasement ranked second among the areas institutional investors were most interested in, after stablecoins.

Put differently, the push for a combined BTC and gold ETF or “debasement trade” isn’t just media hype. There is data supporting it.

BTC-gold correlation falters

Here, it’s worth pointing out that the current short-term correlation between BTC and gold doesn’t align with the data.

Over the past year, gold has rallied by 78% while BTC dropped by 14%. Other perceived safe havens such as silver have also soared by 200% – Making BTC a key laggard.

It is unclear whether the negative correlation will continue in 2026. However, this decoupling occurred after the 10 October 2025, crash, pushing the correlation into negative territory in late 2025.

So far in 2026, an attempt to flip the correlation back to positive has failed. Especially after BTC slid lower while gold climbed higher amid this week’s geopolitical tensions and Japan’s bond crisis.

Final Thoughts

Bitwise and 21Shares are betting big on the debasement trade and have unveiled a combined BTC and gold ETF as an alternative hedge.
Gold-BTC correlation tried to flip to positive, but the recent macro landscape derailed the momentum.

İlgili Sorular

QWhat is the main purpose of Bitwise's new ETF, BPRO?

AThe Bitwise Proficio Currency Debasement ETF (BPRO) is designed to offer investors exposure to the 'debasement trade,' serving as a hedge against currency devaluation and fiscal debt by combining Bitcoin and gold.

QAccording to the article, what real-world data supports the need for a 'debasement trade' hedge?

AThe article cites that U.S. debt has increased to nearly $40 trillion and the U.S. dollar's purchasing power has dropped by 40% over the past two decades, reinforcing currency debasement as a real risk.

QHow did the correlation between Bitcoin and gold perform in the recent past according to the article?

AThe correlation between Bitcoin and gold turned negative in late 2025 after the crash on October 10, 2025. In the past year, gold rallied 78% while Bitcoin dropped 14%, and attempts to flip the correlation back to positive in 2026 have failed.

QWhat was the initial market response to the launch of the BPRO ETF?

AOn its first day, the BPRO ETF saw $13.2 million in trading volume and gathered $52.4 million in assets under management (AUM), indicating significant investor interest.

QAmong institutional investors, how did interest in 'alternative hedges against fiat debasement' rank in Bitwise's survey?

AAccording to Bitwise's latest survey, alternative hedges against fiat debasement ranked as the second area institutional investors were most interested in, right after stablecoins.

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