UK – [20 May 2025] – Cartwright Corporate Treasury, the boutique investment consultancy, is urging insurers to reconsider Bitcoin’s role in strategic portfolios, as part of a diversified and forward-looking investment approach.
As institutional thinking around digital assets continues to evolve, a small allocation to Bitcoin could offer insurers an opportunity to enhance risk-adjusted returns, diversify exposures, better protect against long-term inflationary pressures, and reduce portfolio counterparty risk.
Arash Nasri, Head of Corporate Treasury, at Cartwright, commented: “Insurers are under increasing pressure to generate returns in a high inflation and uncertain economic environment—while maintaining rigorous liability matching and regulatory capital requirements. Although Bitcoin may still feel unconventional to some, its characteristics as a finite, decentralised, highly liquid asset with low correlation to traditional markets make it increasingly difficult to disregard. Despite the penal capital requirements, for the right portfolio even a small allocation—typically in the region of 2–5%—can materially improve diversification and long-term return potential, without undermining portfolio stability. Appropriate rebalancing can release investment gains whilst limiting the capital reserves required.
“For the right portfolio, Bitcoin offers a credible inflation hedge—particularly given that 40% of all the US dollars in circulation have been created in just the last five years. It’s not about speculation—it’s about informed, strategic asset selection. Bitcoin now deserves a seat at the table in institutional investment discussions.”
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