In a recent investment report, Allianz Group declared Bitcoin as a 'reliable store of value,' marking the first time this $25 trillion asset management institution recognizes digital assets as legitimate institutional investment targets.
This report titled (Bitcoin and Cryptocurrencies: The Future of Finance) sharply contrasts with Allianz’s 2019 policy opposing Bitcoin investments.
Today, this German investment giant defines the process of Bitcoin 'evolving from an experimental protocol to a reliable store of value' as a core element of modern portfolio construction.
The report notes: 'Bitcoin's deflationary design, decentralized governance, and low correlation with traditional markets make it an attractive hedging tool and long-term asset.'
Allianz particularly emphasizes that the correlation between Bitcoin and the S&P 500 index is only 0.12, and the correlation with gold is -0.04, making it an effective tool for portfolio diversification.
Allianz lists 'accelerated institutional adoption' as a key factor in the legitimization of Bitcoin. The report mentions that as of the second quarter, Bitcoin purchases by corporate treasuries have exceeded ETFs for three consecutive quarters, with publicly listed companies acquiring approximately 131,000 BTC in the second quarter alone.
The asset management institution also highlighted the newly launched cryptocurrency investment strategies of university endowment funds and specifically pointed out that Emory University is the first U.S. institution to publicly disclose a large-scale Bitcoin investment.
Allianz believes this trend indicates that 'digital assets are becoming integrated into the operations and investment strategies of higher education institutions.'
The report states that Federal Reserve Chairman Jerome Powell recently referred to Bitcoin as the 'digital counterpart of gold,' further confirming institutional acceptance of Bitcoin.
Allianz also noted that the increase in global regulatory clarity has eliminated the major barriers for institutions to participate in the crypto space.
The report suggests that the development of infrastructure facilitates institutional entry. Regulated exchanges like Coinbase, institutional-grade custodians such as Fidelity Digital Assets, and SEC-approved Bitcoin spot ETFs together have 'built a bridge between traditional finance and the crypto space.'
Allianz describes the transformation of Bitcoin as 'one of the most profound changes in the modern financial sector' and predicts that it will continue to integrate into mainstream portfolios.
The institution expects the tokenization of real-world assets and DeFi to 'significantly expand the total addressable market for cryptocurrencies.'
As one of Europe’s largest asset management firms, Allianz's recognition carries significant weight. The company clearly stated in a policy document released in 2019 that it would avoid cryptocurrency investments due to regulatory uncertainty and volatility concerns.
Allianz summarizes in the report: 'Unless an unforeseen disaster occurs or a global financial system collapse due to technological 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.'
