Asset manager Bitwise has launched a Bitcoin and gold exchange-traded fund targeting the “debasement trade” narrative. The Bitwise Proficio Currency Debasement ETF (BPRO) saw approximately $13.2 million in first-day trading volume, underscoring institutional interest in hedging against currency devaluation. However, Bitcoin’s price has significantly underperformed gold and silver over the past year, casting doubt on the short-term correlation between the assets.
Asset managers like Bitwise continue to view Bitcoin as a hedge against currency devaluation despite its recent underperformance against gold. This belief led to the launch of the combined Bitcoin-gold Bitwise Proficio Currency Debasement ETF (BPRO), a product designed for the so-called “debasement trade.” The trade posits that demand for safe-haven assets will rise as fiscal debts grow and fiat currency purchasing power declines.
Bitwise Chief Investment Officer Matt Hougan stated the product combines gold’s historical scarcity with Bitcoin’s digital scarcity. “By combining the historical scarcity of gold with the modern, digital scarcity of Bitcoin, BPRO offers a powerful new way to hedge against the persistent decline of fiat currency,” he added. The firm highlighted U.S. debt nearing $40 trillion and a 40% drop in the dollar’s purchasing power over two decades.
The new ETF gathered approximately $13.2 million in trading volume and $52.4 million in assets on its first day. A survey by the asset manager showed alternative hedges against fiat debasement rank second in interest for institutional investors. This move follows a similar product launch by rival manager 21Shares.
Current market data, however, shows a faltering short-term correlation between Bitcoin and traditional safe havens. Over the past year, gold has rallied 78% while Bitcoin dropped 14%, and silver has soared 200%. This negative correlation emerged after a market crash in October 2025 and has persisted into early 2026. Recent geopolitical tensions and a bond crisis in Japan have further pressured Bitcoin while gold climbed.
