Allianz declared Bitcoin (BTC) a “credible store of value” in a recent investment report, marking the first time the $2.5 trillion asset manager has endorsed digital assets as a legitimate institutional investment.

The report, titled “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 Bitcoin’s evolution from “an experimental protocol into a credible store of value” as fundamental to modern portfolio construction.

The report stated:

“Bitcoin’s deflationary design, decentralised governance, and low correlation to traditional markets have made it an attractive hedge and long-duration asset.” 

Allianz highlighted Bitcoin’s 0.12 correlation with the S&P 500 and negative 0.04 correlation with gold, positioning it as an effective portfolio diversifier.

Institutional adoption drives recognition

Allianz cited accelerating institutional adoption as a key factor in Bitcoin’s legitimization. The report noted that corporate treasuries surpassed exchange-traded funds (ETFs) in Bitcoin purchases for three consecutive quarters through the second quarter, with public companies acquiring approximately 131,000 BTC in the second quarter alone.

The asset manager emphasized university endowments’ emerging crypto strategies, highlighting Emory University as the first U.S. institution to disclose significant Bitcoin investments publicly. 

Allianz characterized this trend as signaling “the integration of digital assets into both operational and investment strategies across higher education.”

Federal Reserve Chairman Jerome Powell’s recent acknowledgment of Bitcoin as a “digital counterpart to gold” further validated institutional acceptance, according to the report. 

Allianz noted that regulatory clarity improvements globally have eliminated major barriers to institutional participation.

Infrastructure maturation enables access

The report credited infrastructure development with facilitating institutional entry. Regulated exchanges like Coinbase, institutional-grade custodians including Fidelity Digital Assets, and SEC-approved spot Bitcoin ETFs have “bridged the gap between traditional finance and crypto.”

Allianz described Bitcoin’s transformation as “one of the most profound shifts in modern finance,” predicting continued integration into mainstream portfolios. 

The firm expects real-world asset tokenization and decentralized finance to “substantially expand crypto’s total addressable market.”

The endorsement carries significant weight given Allianz’s status as one of Europe’s largest asset managers. A piece from the company’s policy issued in 2019 explicitly avoided crypto investments due to regulatory uncertainty and volatility concerns.

Allianz concluded that “barring any unforeseen calamity or global collapse due to technological flaws,” Bitcoin represents a permanent addition to the financial system rather than a speculative trend.

It further stated that digital assets are “not just a complement to but a cornerstone of our global financial future.”

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The influential financial advisor who wrote the 2021 book “The Truth about Crypto” is reportedly increasing his recommended investment allocation for crypto.

CNBC reports that Ric Edelman, who previously said that allocating as much as 1% to crypto was reasonable, is now saying that financial advisors should recommend allocating between 10% and 40% to digital assets. 

Says Edelman in an interview with CNBC’s Crypto World, 

“Today I am saying 40%, that’s astonishing. No one has ever said such a thing.”

The founder of the Digital Assets Council of Financial Professionals is now more bullish on crypto assets amid the massive changes in the industry.

According to Edelman, Bitcoin and the broader crypto space faced numerous uncertainties four years ago – from the possibility of government bans on BTC, to concerns about blockchain technology becoming obsolete, to questions about whether digital asset adoption would gain meaningful traction.

“Today, all those questions have been resolved. It’s radically changed and is now a mainstream asset.”

Edelman also says that Bitcoin and crypto should play a bigger role in long-term investment strategies as life expectancy in the US increases.

According to the financial advisor, allocating 60% in stocks and 40% in bonds no longer works, given that Americans can live up to 85 today, or even much older with advances in tech and medicine. 

“If you’re a financial advisor and you had a 30-year-old client who was saving for their long-term future, you would tell them to put 100% of their money in stocks, because they have 50 years to go. Today’s 60-year-old is kind of like yesterday’s 30-year-old.

You need to get better returns than you can get from bonds, and you need to hold equities longer than ever before.”

Edelman notes that Bitcoin is a great portfolio diversifier as it doesn’t appear to be correlated with the performance of other asset classes. He also says that digital assets tend to outperform stocks, bonds, gold and others.

“Bitcoin prices don’t move in sync with stocks or bonds or gold or oil or commodities… The crypto asset class offers the opportunity for higher returns than you’re likely to get in virtually any other asset class.”

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Hong Kong-based Animoca Brands is preparing for a listing in New York, citing US President Donald Trump’s relaxed regulatory stance on digital assets as a window of opportunity to enter the world’s biggest capital market.

Animoca executive chair Yat Siu told the Financial Times that an announcement may be made soon, with the company currently evaluating various shareholding structures.

Siu said the decision to pursue a US listing would not hinge on market conditions but rather on timing and strategic positioning.

Animoca, which was delisted from the Australian Securities Exchange in 2020 over governance concerns and the status of some cryptocurrencies, has since built a robust investment portfolio, including stakes in OpenSea, Kraken and Consensys.

The company reported unaudited earnings of $97 million from $314 million in revenue for the year ending December 2024, a sharp increase from the previous year.

Siu told the FT that Animoca is the largest non-financial crypto firm globally, with $300 million in cash and stablecoins and over $538 million in digital assets.

He also hinted that other Animoca portfolio companies, including US-based Kraken, may follow suit with listings in the US in 2025 or 2026.

Related: Deribit eyes US expansion under crypto-friendly Trump admin: FT

Crypto firms consider US comeback

Under former President Joe Biden, federal agencies launched numerous lawsuits and enforcement actions against digital asset firms. Siu said this regulatory hostility stifled innovation and discouraged overseas companies from entering the US market.

In contrast, Trump’s return to office has been accompanied by pledges to support the crypto sector and a rollback of enforcement activity. Siu described this as “a unique moment in time,” adding that not taking advantage of it “would be one heck of a wasted opportunity.”

Since Trump’s election victory, the US Securities and Exchange Commission has dropped or paused over a dozen enforcement cases against crypto companies.

Additionally, the Department of Justice recently announced the dissolution of its cryptocurrency enforcement unit, signaling a softer approach to the sector.

This hands-on approach appears to be boosting industry confidence. OKX, for example, has announced plans to establish a US headquarters in San Jose, California, just months after settling a $504 million case with US authorities.

On April 28, Nexo, which left the US at the end of 2022, citing a lack of regulatory clarity, revealed that it is reentering the US market.

Magazine: Bitcoin eyes ‘crazy numbers,’ JD Vance set for Bitcoin talk: Hodler’s Digest, May 4 – 10

A senior European Central Bank (ECB) official said that President Donald Trump’s aggressive push for crypto adoption could fuel financial instability and urged EU policymakers to strengthen their regulatory stance to mitigate potential fallout.

François Villeroy de Galhau, Governor of the Bank of France and a member of the ECB’s Governing Council, said in an interview with French news outlet La Tribune Dimanche that the US “risks sinning through negligence” by prioritizing crypto-friendly policies without adequate oversight.

He argued that by “encouraging crypto assets and non-bank finance,” the US is “sowing the seeds of future upheavals,” adding that financial crises have historically “often originated in the United States and spread to the rest of the world.”

Villeroy de Galhau’s comments reflect a growing concern among European regulators over Trump’s pivot toward digital assets. Since returning to office, the Trump administration has taken a series of steps to integrate crypto into the financial system.

These include signing an executive order establishing a Strategic Bitcoin Reserve, forming a Presidential Working Group on digital assets, and pushing for legislative reforms that would roll back Biden-era restrictions on crypto banking.

ECB’s growing criticism

The ECB has repeatedly cautioned against the risks of a pro-crypto economic policy, warning that a lack of regulatory safeguards could trigger market turbulence. In a report last year, the central bank criticized the speculative nature of crypto, labeling them as “highly volatile and unsuitable as a reliable form of money.”

ECB President Christine Lagarde has also been vocal about the dangers of large-scale crypto adoption, previously describing Bitcoin as “a speculative asset with no intrinsic value” and cautioning that unregulated digital assets could undermine financial stability.

Earlier this year, the ECB announced a two-phase initiative to develop blockchain-based settlements, signaling its preference for a controlled, state-backed approach to digital assets. The plan includes establishing central bank digital currency (CBDC) called the digital euro, which the bank argues would provide a safer alternative to privately issued cryptocurrencies.

Despite Trump’s pro-crypto stance, financial markets have responded with volatility. Bitcoin recently tumbled below $80,000 — down over 25% from its January high of $109,000 — amid investor uncertainty over US economic policies. Equities have also taken a hit, with the S&P 500 falling more than 10% from its February peak after Trump threatened to impose 200% tariffs on European spirits.

Europe bracing for economic impact

Villeroy de Galhau urged European leaders to “strengthen their negotiating position” against the U.S., arguing that Trump’s economic policies are based on a “false vision” of the global economy as a zero-sum game. He warned that Europe should not be complacent in the face of Washington’s shifting financial landscape.

As the ECB moves forward with its digital payments infrastructure, European regulators appear to be positioning themselves as a counterbalance to the US’ deregulated approach. The divide highlights a fundamental clash in financial philosophy — one that could shape the future of global markets.

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