Institution managing 25 trillion changes its tune: BTC is a reliable store of value.

In a recent investment report, Allianz Group announced that Bitcoin is a “reliable store of value,” marking the first time that this institution, which manages $2.5 trillion in assets, recognizes digital assets as a legitimate target for institutional investment.

This report titled “Bitcoin and Cryptocurrency: The Future of Finance” stands in stark contrast to Allianz’s 2019 policy opposing Bitcoin investments.

Today, this German investment giant defines the process of evolving Bitcoin “from an experimental protocol to a reliable store of value” as a core element of modern portfolio construction.

The report pointed out: “The deflationary design of Bitcoin, decentralized governance, and low correlation with traditional markets make it an attractive hedge tool and long-term asset.”

Allianz emphasizes that the correlation between Bitcoin and the S&P 500 index is only 0.12, while the correlation with gold is -0.04. This characteristic makes it an effective tool for portfolio diversification.

Allianz lists “institutional adoption acceleration” as a key factor for Bitcoin legalization. The report mentions that as of the second quarter, Bitcoin purchases by corporate treasuries have exceeded ETFs for three consecutive quarters, with public companies acquiring approximately 131,000 BTC in just the second quarter.

The asset management institution also emphasized the newly launched cryptocurrency investment strategy of university endowment funds, specifically noting that Emory University is the first publicly disclosed institution in the United States to have a large-scale Bitcoin investment.

Allianz believes that this trend indicates that “digital assets are integrating into the operational and investment strategies of higher education institutions.”

A report states that Federal Reserve Chairman Jerome Powell recently referred to Bitcoin as the “digital equivalent of gold,” further confirming institutional recognition of Bitcoin.

Allianz also pointed out that the improvement in global regulatory clarity has eliminated the main barriers for institutions to participate in the crypto space.

The report suggests that the development of infrastructure has facilitated the entry of institutions. Regulated exchanges like Coinbase, institutional custodians like Fidelity Digital Assets, and the SEC-approved Bitcoin spot ETF have collectively “built a bridge between traditional finance and the crypto space.”

Allianz describes the transformation of Bitcoin as “one of the most profound changes in modern finance” and predicts that it will continue to integrate into mainstream portfolios.

The institution expects that the tokenization of real-world assets and DeFi will “significantly expand the total addressable market for cryptocurrencies”.

As one of the largest asset management institutions in Europe, Allianz’s recognition this time carries significant weight. The company clearly stated in its policy document released in 2019 that it would avoid cryptocurrency investments due to regulatory uncertainty and concerns about volatility.

Allianz summarized in its report: “Unless an unforeseen disaster occurs, or a global financial system collapse is caused by technical defects, Bitcoin will become a permanent component of the financial system, rather than a short-term speculative trend.”

The report further points out that digital assets “are not only a supplement to the future of global finance, but also its cornerstone.”