Australia's largest pension fund invests $17M in bitcoin, a first
A significant Australian pension and wealth management organization, AMP Ltd., has dedicated A$27 million (about $17.2 million) to Bitcoin (BTC) futures, an unprecedented step.
This transaction makes AMP one of the first large Australian retirement managers to adopt bitcoin products, showing a change in views toward digital assets in a conservative industry.
The move to invest in Bitcoin futures was revealed on LinkedIn by AMP's Senior Portfolio Manager, Steve Flegg.
A firm spokesman told Bloomberg that the investment was mostly in Bitcoin futures and that there are no plans to increase it.
BTC rose more than 40% after Donald Trump's November election win to hit $100,000 for the first time.
Despite AMP's pioneering efforts, the A$4.1 trillion Australian pension system has showed little interest in bitcoin investments.
Bitcoin is not important to the Australian economy, according to Reserve Bank Governor Michele Bullock.
The Australian pension business has been criticized for customer service, value in unlisted markets, and investing costs.
Over the last two years, several AMP pension plans failed an annual performance test meant to detect underperforming retirement products.
The debut of US exchange-traded funds (ETFs) that invest directly in Bitcoin and Ethereum (ETH) by renowned financial managers was important, she said.
“After testing and careful consideration by our investment team and committee, we included a small and risk-controlled position in digital assets through our Dynamic Asset Allocation program in May,” Shelley said.
AMP's BTC futures exposure is 0.05% of its pension assets, showing a cautious but progressive attitude to digital asset investing.
AMP recognizes the dangers and volatility of cryptocurrencies but recognizes their potential advantages. Shelley stated that their superannuation members have benefited from this exposure, but the investment is part of a diverse asset mix and would be maintained carefully.
