Allianz explained Bitcoin (BTC) a “credible value of value” in a Recent investment report“ Marking the first time that the $ 2.5 trillion asset manager has approved digital assets as a legitimate institutional investment.
The report, entitled “Bitcoin and Cryptocurrencies: The Future of Finance”, represents a dramatic shift from Allianz’s 2019 policy against Bitcoin Investments.
The German investment giant now characterizes the evolution of Bitcoin from “an experimental protocol to a credible value shop” as fundamental for modern portfolio construction.
The report stated:
“The deflatoire design of Bitcoin, decentralized board and low correlation with traditional markets have made it an attractive hedge and long -term assets.”
Allianz emphasized the 0.12 correlation of Bitcoin with the S&P 500 and negative 0.04 correlation with gold and positioned it as an effective diversifier portfolio.
Institutional adoption stimulates recognition
Allianz called the institutional adoption accelerating as a key factor in the legitimization of Bitcoin. The report noted that business canians in Bitcoin purchases for three consecutive quarters until the second quarter surpassed in Bitcoin purchases in Bitcoin purchases, in which public companies only acquire around 131,000 BTC in the second quarter.
The asset manager emphasized the emerging crypto strategies of University Endowments and emphasized Emory University as the first American institution that makes significant Bitcoin investments public.
Allianz characterized this trend as a signaling “The integration of digital assets in both operational and investment strategies in higher education.”
Federal Reserve Chairman Jerome Powell’s recently Bitcoin recognition As a “digital counterpart of gold”, according to the report, the institutional acceptance further validated.
Allianz noted that the legal clarity improvements worldwide have eliminated major barriers to institutional participation.
Infrastructure maturation makes access possible
The report has credited infrastructure development with facilitating institutional access. Regulated exchanges such as Coinbase, institutional classics, including fidelity digital assets and sec-approved place Bitcoin ETFs have “bridged the gap between traditional finances and crypto.”
Allianz described the transformation of Bitcoin as “one of the most in -depth shifts in modern finances”, which predicted continuous integration in regular portfolios.
The company expects Real-World tokenization and decentralized financing to “considerably expand the total addressable market of crypto”.
The approval has a considerable weight given the status of Allianz as one of Europe’s largest asset managers. A piece from the company’s policy issued in 2019 explicitly avoided crypto investments due to uncertainty and volatility problems.
Allianz concluded that “Bitcoin is a permanent addition to the financial system instead of a speculative trend”, apart from any unforeseen disaster or global collapse due to technological errors, “Bitcoin instead of a speculative trend.
It further stated that digital assets “are not only a supplement to just a cornerstone of our global financial future.”
