An institution that manages $2.5 trillion has changed its tune after 6 years: Bitcoin is a reliable store of value

In a recent investment report, Allianz Group declared Bitcoin a "reliable store of value," marking the first time that the institution, which manages $2.5 trillion in assets, has recognized digital assets as a legitimate institutional investment target.

The report, titled "Bitcoin and Cryptocurrencies: The Future of Finance," stands in stark contrast to Allianz's 2019 policy against Bitcoin investment.

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

“Bitcoin’s deflationary design, decentralized governance, and low correlation with traditional markets make it an attractive hedge and long-term asset,” the report states.

Allianz specifically emphasized that Bitcoin's correlation with the S&P 500 index is only 0.12, and its correlation with gold is -0.04, which makes it an effective portfolio diversification tool.

Allianz cited "accelerated institutional adoption" as a key factor in Bitcoin's legitimization. The report noted that as of the second quarter, corporate treasury Bitcoin purchases had exceeded ETFs for three consecutive quarters, with publicly listed companies purchasing approximately 131,000 BTC in the second quarter alone.

The asset manager also highlighted university endowment funds’ emerging cryptocurrency investment strategies, specifically noting that Emory University was the first U.S. university to publicly disclose a significant Bitcoin investment.

Allianz believes this trend indicates that "digital assets are being integrated into the operations and investment strategies of higher education institutions."

The report said that Federal Reserve Chairman Jerome Powell recently called Bitcoin the "digital counterpart of gold", further confirming the institution's recognition of Bitcoin.

Allianz also noted that increased global regulatory clarity has removed major barriers to institutional participation in the crypto space.

The report argues that infrastructure development has facilitated institutional entry. Regulated exchanges like Coinbase, institutional-grade custodians like Fidelity Digital Assets, and SEC-approved Bitcoin spot ETFs have collectively "built a bridge between traditional finance and the crypto space."

Allianz described Bitcoin’s transformation as “one of the most profound changes in modern finance” and predicted its continued integration into mainstream investment portfolios.

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

As one of Europe's largest asset management institutions, Allianz's endorsement is significant. In a policy document released in 2019, the company clearly stated that it would avoid cryptocurrency investment due to regulatory uncertainty and volatility concerns.

Allianz concluded in its report: “Barring an unforeseen catastrophe or a collapse of the global financial system due to a technological flaw, Bitcoin will become a permanent part of the financial system rather than a short-term speculative trend.”

The report further states that digital assets “are not only complementary to the future of global finance, but also its cornerstone.”