Despite gold underperforming in recent months, asset managers still believe Bitcoin offers protection against currency devaluation and budget debt.
And this belief has led Bitwise to unveil a combined Bitcoin-gold ETF: Bitwise Proficio Valuta Debasement ETF (BPRO). This is intended to provide investors with exposure to the so-called ‘debasement trade’.
The trade is a narrative that demand for safe havens like gold, silver and Bitcoin will increase as US budget debt and subsequent currency devaluation erode purchasing power and prosperity.
Bitwise CIO Matt Hougan reiterated the same, adding that this ‘hard asset approach’ is the missing piece in the portfolio. Especially since traditional stocks and ETFs have not helped preserve wealth amid the rapid expansion of the money supply. He added,
“By combining the historic scarcity of gold with the modern, digital scarcity of Bitcoin, BPRO offers a powerful new way to hedge against the continued decline of fiat money.”
Bitwise’s BTC Gold ETF Reaches $13 Million on Day 1
The company highlighted that U.S. debt has risen to nearly $40 trillion, and the purchasing power of the U.S. dollar has fallen 40% over the past two decades. This reinforces the ‘currency decline’ 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, highlighting interest in the debasement trade.
In fact, the latest from the asset manager questionnaire showed that alternative hedges against fiat debasement ranked second among the areas institutional investors were most interested in, behind stablecoins.
Source: Bitwise
In other words, the push for a combined BTC and gold ETF or “debasement trade” is not just media hype. There is data to support this.
The correlation between BTC and gold is faltering
Here it is worth pointing out that the current short-term correlation between BTC and gold is not in line with the data.
Over the past year, gold has risen 78%, while BTC has fallen 14%. Other perceived safe havens, such as silver, have also risen 200%, making BTC a major laggard.
Source: BTC vs Gold Performance, TradingView
It is unclear whether the negative correlation will continue into 2026. However, this disconnect occurred after the October 10, 2025 crash, causing the correlation to become negative at the end of 2025.
So far, an attempt to make the correlation positive again in 2026 has failed. Especially after BTC fell while gold rose, amid this week’s geopolitical tensions and the Japanese bond crisis.
Source: Het Blok
Final thoughts
- Bitwise and 21Shares are betting big on the debasement trade, unveiling a combined BTC and gold ETF as an alternative hedge.
- The correlation between gold and BTC tried to turn positive, but the recent macro landscape derailed the momentum.