Inside Bitwise’s bet on the debasement trade with Bitcoin-gold ETF
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.
ambcrypto01/24 05:02
