Coinbase Launches Store of Value Index Blending Bitcoin and Gold to Hedge Bear Markets

▲ 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 report on April 9 (local time), the two firms unveiled the Coinbase Store of Value Index (COINSOV), designed to preserve capital by leveraging the strengths of both 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 allocation between Bitcoin and Pax Gold depending on market conditions. Weightings are assigned in proportion to the inverse of each asset’s volatility, and the portfolio is rebalanced quarterly to capture Bitcoin’s upside potential while maintaining downside protection similar to gold. Currently, Pax Gold accounts for 71.49% of the index, while Bitcoin represents 28.51%.

The launch reflects growing investor demand for asset protection amid rising global debt and currency depreciation. According to research conducted by MarketVector Indexes from 2017 to 2025, this approach delivered higher risk-adjusted returns and significantly lower drawdowns compared to a simple 50-50 mix of Bitcoin and gold. MarketVector stated that the index’s transparent and rules-based construction provides a disciplined means of capital preservation in changing macroeconomic environments.

In the digital asset market, debate continues over whether Bitcoin can replace gold as a store of value. As Bitcoin’s correlation with the stock market has recently increased while gold continues to hit record highs, efforts to manage volatility by combining the two assets are gaining traction. Coinbase Asset Management noted that the definition of a store of value is expanding from gold-centric assets to include digital assets.

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