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In a recent investment report, Allianz announced that Bitcoin is a “reliable value storage tool”, marking the institution that manages $2.5 trillion in assets.For the first time, digital assets are recognized as legal institutional investment targets.
This report, titled “Bitcoin and Cryptocurrency: The Future of Finance”, is in sharp contrast to Allianz’s 2019 policy against Bitcoin investment.
Today, the German investment giant defines Bitcoin’s process of “evolving from an experimental protocol into a reliable store of value tool” as the core element of modern portfolio construction.
“Bitcoin’s deflation design, decentralized governance, and low correlation with traditional markets make it an attractive hedge tool and long-term asset,” the report noted.
Allianz specifically emphasized that the correlation between Bitcoin and the S&P 500 is only 0.12 and the correlation with gold is -0.04, which makes it an effective portfolio diversification tool.
Allianz lists “Institutional Adoption Acceleration” as a key factor in Bitcoin legalization.The report mentioned that as of the second quarter, the amount of Bitcoin purchased by the corporate treasury exceeded ETFs for three consecutive quarters, and listed companies purchased about 131,000 BTC in the second quarter alone.
The asset management agency also highlighted the newly launched cryptocurrency investment strategy of the university endowment fund, and specifically pointed out that Emory University is the first university in the United States to publicly disclose large-scale Bitcoin investment.
Allianz believes that this trend indicates that “digital assets are being integrated into the operations and investment strategies of higher education institutions.”
The report said that Fed Chairman Jerome Powell recently called Bitcoin “the digital counterpart of gold”, further confirming the institutional recognition of Bitcoin.
Allianz also pointed out that the improvement in global regulatory clarity has eliminated the major obstacles to institutional participation in the field of encryption.
The report believes that the development of infrastructure has provided convenience for institutional entry.Coinbase and other regulated exchanges, institutional-level custodians such as Fidelity Digital Assets, as well as Bitcoin spot ETFs approved by the SEC, have jointly “built a bridge between traditional finance and cryptocurrency fields.”
Allianz describes Bitcoin’s transformation as “one of the most profound changes in modern finance” and predicts that it will continue to integrate into the mainstream portfolio.
The agency expects thatReal-world asset tokenization and DeFi will “significantly expand the total addressable market for cryptocurrencies”.
As one of the largest asset management institutions in Europe, Allianz’s recognition is very important.The company made it clear in its policy documents released in 2019 that it would avoid cryptocurrency investment due to regulatory uncertainty and volatility concerns.
“Unless an unforeseen disaster occurs or a collapse of the global financial system due to technological flaws, Bitcoin will become a permanent component of the financial system, not a short-term speculative trend,” Allianz concluded in the report.
The report further pointed out that digital assets “are not only a supplement to the future of global finance, but also a cornerstone.”
