Deutsche Bank on Proposed U.S. Bitcoin Reserve

Deutsche Bank, a German multinational investment bank, has commented positively on the proposed U.S. Bitcoin reserve.

Matthew Sigel, Head of Digital Assets Research at VanEck, noted the report in a tweet today.

The Deutsche Bank Research report suggests Bitcoin could play a significant role in the U.S. financial strategy as a strategic reserve asset. It highlights Bitcoin’s fixed supply, decentralization, and strong security track record, comparing it to gold regarding scarcity and resilience.

Furthermore, Deutsche Bank cited increasing concerns over inflation and dollar depreciation, believing Bitcoin’s inclusion in national reserves could hedge against inflation and strengthen the U.S. dollar’s role in the crypto market.

The bank emphasized that a U.S. Bitcoin reserve could signal confidence in the cryptocurrency’s future. It could establish new international standards, similar to those set by U.S. gold reserves in the 20th century.

> Deutsche Bank highlights positives of US Strategic Bitcoin Reserve… pic.twitter.com/jALTM31gmd
> — matthew sigel, recovering CFA (@matthew_sigel) March 10, 2025

Additionally, holding Bitcoin as a reserve asset makes sense from a diversification perspective due to BTC’s low correlation with other assets, which shows Bitcoin can perform independently of traditional investments.

Data Confirms Bitcoin’s Low Correlation

The Deutsche Bank Research’s January 2025 asset correlation matrix supports these claims. The data indicates that Bitcoin maintains minimal correlation with stocks, bonds, and commodities, showcasing its potential as a hedge against macroeconomic risks.

This insight confirms the increasing institutional interest in Bitcoin, as governments, funds, and asset managers seek non-traditional hedges amid economic uncertainty. Deutsche Bank emphasized that with Bitcoin’s continued price appreciation, holding it as a reserve asset would bolster public finances and mitigate national debt.

Other Industry Experts’ Commentaries on the Benefits of a U.S. Bitcoin Reserve

Bitwise CIO Matt Hougan has also discussed the potential impacts of the U.S. Strategic Bitcoin Reserve, suggesting it reduces the likelihood of a U.S. Bitcoin ban. This reserve signals a commitment to the digital asset and acknowledges it as an official asset class.

Hougan anticipates that other countries may follow suit by establishing their own reserves, potentially accelerating global Bitcoin adoption. The U.S. move might prompt nations to act quickly to secure Bitcoin before U.S. purchases drive up prices.

Moreover, Hougan argued that the reserve makes it harder for financial institutions to label Bitcoin as unsuitable, potentially softening the stance of organizations like the European Central Bank, which previously rejected Bitcoin.