Bitcoin is a viable store-of-value asset for pension portfolios
November 11, 2025
Investing fiduciary capital into cryptocurrencies remains a point of contention for many asset owners due to the presumed volatility and unclear fundamentals surrounding digital assets. However, proponents of digital assets argue that cryptocurrencies could emerge as a store-of-value asset akin to gold.
AMP Super, which manages A$60 billion ($39 billion) in Australia, is among those who believe in the potential of cryptocurrencies as store-of-value assets. The fund made a modest investment in Bitcoin futures last year through its dynamic asset allocation program, which covers commodities as well. Stuart Eliot, the head of portfolio design and management at AMP Super, noted that the decision was met with significant support from members, as indicated by the spike in inquiries following the investment announcement.
According to Eliot, Bitcoin possesses characteristics that align with store-of-value assets, including scarcity, durability, portability, and liquidity. When compared to gold or fiat money, Bitcoin appears to fit the definition of a store-of-value asset more accurately. These assets play a crucial role in maintaining the real value of portfolios, hedging against monetary debasement and event risk, as well as enhancing portfolio returns and Sharpe ratios.
Despite the potential benefits of store-of-value assets, some asset allocators are hesitant to invest due to the absence of a capital market forecasting framework. To navigate this challenge, AMP Super leveraged signals such as price momentum, investor sentiment, and indicators of liquidity and inflation when trading Bitcoins. In particular, Eliot highlighted the impact of inflation expectations on the prices of Bitcoin and gold since 2020.
Moreover, AMP Super has begun exploring on-chain analytics, which involve analyzing public blockchain data like transaction patterns to predict cryptocurrency price movements accurately. Eliot underscored the effectiveness of this approach in generating trading signals for the fund. Looking ahead, technology advancements such as cryptocurrency and tokenization are expected to transform the investment landscape significantly.
Robert Crossley, the global head of industry and digital advisory services at Franklin Templeton, emphasized the shift towards programmable assets dominated by wallets and the emergence of tokenization in the asset management sector. The UK, for instance, is considering a “direct to fund” model that allows end investors to invest directly in a fund without the fund manager serving as an intermediary.
While the concept of digital assets is vast and evolving, Crossley advised asset allocators to focus on educating internal teams and stakeholders to keep pace with industry developments. He urged caution against overlooking the nuances of implementing technology-driven solutions in investment processes. By staying informed and adaptable, investors can navigate the changing landscape of digital assets effectively and leverage emerging opportunities in the market.
