- MarketVector Indexes and Coinbase Asset Management have unveiled a new index tracking Bitcoin and tokenized gold.
- It is designed as a benchmark that combines digital assets with traditional store of value instruments.
MarketVector Indexes and Coinbase Asset Management have launched a new index tracking Bitcoin and tokenized gold. Its goal is to provide investors with access to assets typically associated with capital preservation.
The Coinbase Store of Value Index tracks the price of Bitcoin and Pax Gold (PAXG), one of the largest gold-backed stablecoins. The index was developed as a benchmark that combines digital assets with traditional store of value.
Pax Gold Market Capitalization
Bitcoin and gold are weighted using an inverse volatility model, meaning assets with lower volatility receive a higher weight. The benchmark index will be rebalanced quarterly and calculated as a price-to-earnings index in US dollars.
According to MarketVector and Coinbase, “the index reflects the changing perception of the store of value,” which now includes not only gold, but also Bitcoin.
The flagship cryptoasset has long been considered a potential store of value, as it offers higher long-term returns than traditional assets and is seen as a hedge against inflation. However, this view has been challenged in the past year, as Bitcoin at times traded as a risky asset.
This was noted by analysts at Grayscale Investments. They noted, which, against the backdrop of continuing macroeconomic and geopolitical uncertainty Bitcoin behaves more like a growth stock than a traditional store of value.
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