A UK consulting firm is urging insurers to consider investing in bitcoin, claiming a small allocation to the cryptocurrency could improve diversification and long-term returns.
Cartwright Corporate Treasury, which advised what is believed to be one of the few UK pension schemes to invest in Bitcoin, said the cryptocurrency’s unique qualities make it a viable asset for institutional investors as traditional approaches evolve in response to economic uncertainty.
These qualities include a finite supply, decentralised structure, and low correlation with mainstream financial markets.
Arash Nasri, head of corporate treasury at Cartwright, said: “Insurers face growing pressure to generate returns in a high-inflation, unpredictable economic landscape. While Bitcoin may still seem unconventional to some, its liquidity and diversification benefits cannot be ignored.
“Even a modest allocation of 2–5% can enhance portfolio stability and hedge against inflation.”
Nasri also pointed to Bitcoin’s potential role in countering inflationary pressures, citing the sharp increase in US dollar supply over the past five years.
While capital requirements for holding Bitcoin remain stringent, strategic allocation and rebalancing could allow investment gains without excessive reserve burdens, the company said.
As institutional investors continue to adapt to evolving market conditions, Cartwright’s call to action highlights an ongoing debate about Bitcoin’s place in long-term financial strategies.
