Institutions managing 25 trillion change their tune: Bitcoin is a reliable store of value.

Source: cryptoslate

Compiled by: Blockchain Knight

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, has recognized digital assets as legitimate investment targets for institutions.

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

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

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

Allianz emphasizes that the correlation of Bitcoin with the S&P 500 index is only 0.12, and its correlation with gold is -0.04, making it an effective portfolio diversification tool.

Allianz has listed “institutional adoption acceleration” as a key factor for the legalization of Bitcoin. The report mentions that as of the second quarter, corporate treasury Bitcoin purchases have exceeded ETFs for three consecutive quarters, with publicly traded companies purchasing approximately 131,000 BTC in the second quarter alone.

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

Allianz believes that this trend indicates that “digital assets are being integrated 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 counterpart of gold,” further confirming institutional recognition of Bitcoin.

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

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

Allianz described 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 explicitly stated in a policy document released in 2019 that it would avoid cryptocurrency investments due to regulatory uncertainty and concerns about volatility.

Allianz summarized in the report: “Unless an unforeseen disaster occurs, or a global financial system collapse due to 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.”