“Mixing Bitcoin and Gold to Defend Against Bear Markets”...Coinbase Launches Store of Value Index

▲ Bitcoin (BTC), Gold/AI-generated image

MarketVector Indexes and Coinbase Asset Management have launched a new financial index combining Bitcoin (BTC) and gold.

According to a CoinTelegraph report on April 9 (local time), the two companies unveiled the Coinbase Store of Value Index (COINSOV), which aims to preserve assets by combining the advantages of digital and traditional assets.

COINSOV is a rules-based benchmark index that tracks Bitcoin and Pax Gold (PAXG), a tokenized version of gold. The index adopts a volatility-aware framework that dynamically adjusts the weighting of Bitcoin and Pax Gold based on market conditions. Weights are assigned inversely proportional to the volatility of each asset, and rebalancing occurs quarterly. This design aims to capture Bitcoin's upside potential while maintaining downside protection similar to gold. Currently, Pax Gold accounts for 71.49% and Bitcoin for 28.51% of the weighting.

The launch of this index reflects investor demand to protect assets in response to rising global debt and declining currency values. A study conducted by MarketVector Indexes from 2017 to 2025 showed that this method yielded higher risk-adjusted returns and significantly lower drawdowns than a simple 50/50 mix of Bitcoin and gold. MarketVector Indexes explained that the index provides a disciplined means of capital preservation amidst changes in the macroeconomic environment through its transparent and rules-based construction.

In the crypto asset market, the debate continues over whether Bitcoin can replace gold as a store of value. Recently, as the correlation between Bitcoin and the stock market has increased, while gold has shown strength by hitting new highs daily, attempts to manage volatility by combining the two assets are on the rise. Coinbase Asset Management analyzed that the definition of a store of value is expanding from being gold-centric to including digital assets.

*Disclaimer: This article is for informational purposes only and does not take responsibility for investment losses based on it. The content should be interpreted for informational purposes only.*