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

Regardless of underperforming gold for the previous few months, asset managers nonetheless consider that Bitcoin is a hedge towards forex devaluation and monetary debt. 

And this perception has led Bitwise to unveil a mixed Bitcoin gold ETF – Bitwise Proficio Foreign money Debasement ETF (BPRO). That is meant to supply traders publicity to the so-called “debasement commerce.”

The commerce is a story that the demand for protected havens like gold, silver, and Bitcoin will improve as U.S fiscal money owed and subsequent forex devaluation slash buying energy and wealth. 

Bitwise CIO Matt Hougan echoed the identical, including that this “exhausting asset strategy” is the lacking piece within the portfolio. Particularly since conventional shares and ETFs haven’t helped protect wealth amid speedy cash provide enlargement. He added, 

“By combining the historic shortage of gold with the fashionable, digital shortage of Bitcoin, BPRO gives a strong new technique to hedge towards the persistent decline of fiat forex.”

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

The agency highlighted that U.S debt elevated to shut to $40 trillion, and the U.S greenback’s buying energy dropped by 40% over the previous twenty years – Reinforcing forex ‘debasement’ as an actual threat. 

Bitwise’s transfer got here just a few days after rival asset supervisor 21Shares launched the same product.

The BPRO product saw $13.2 million in buying and selling quantity and $52.4 million in property beneath administration (AUM) on day 1, underscoring curiosity within the “debasement commerce.”

Actually, the asset supervisor’s newest survey confirmed that various hedges towards fiat debasement ranked second among the many areas institutional traders had been most serious about, after stablecoins. 

Supply: Bitwise

Put otherwise, the push for a mixed BTC and gold ETF or “debasement commerce” isn’t simply media hype. There may be information supporting it. 

BTC-gold correlation falters

Right here, it’s price declaring that the present short-term correlation between BTC and gold doesn’t align with the information.

Over the previous 12 months, gold has rallied by 78% whereas BTC dropped by 14%. Different perceived protected havens reminiscent of silver have additionally soared by 200% – Making BTC a key laggard. 

Supply: BTC vs gold efficiency, TradingView 

It’s unclear whether or not the adverse correlation will proceed in 2026. Nevertheless, this decoupling occurred after the ten October 2025, crash, pushing the correlation into adverse territory in late 2025. 

To this point in 2026, an try and flip the correlation again to optimistic has failed. Particularly after BTC slid decrease whereas gold climbed greater amid this week’s geopolitical tensions and Japan’s bond disaster. 

Supply: The Block 

Remaining Ideas

• Bitwise and 21Shares are betting massive on the debasement commerce and have unveiled a mixed BTC and gold ETF in its place hedge. 
• Gold-BTC correlation tried to flip to optimistic, however the latest macro panorama derailed the momentum.