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In the Australian superannuation industry, AMP Ltd. is a leading superannuation and wealth management company shared about A $27 million (about $17.2 million) to Bitcoin (BTC) future.
This investment marks AMP as one of the first major superannuation managers in Australia to embrace cryptocurrency products, reflecting a shift in attitude towards digital assets within the traditional savings sector.
AMP’s Bitcoin Futures Investment
AMP’s Chief Portfolio Officer, Steve Flegg, announced the decision on LinkedIn, noting that the company “took a big and small stake in Bitcoin” earlier this year.
A representative of the company told Bloomberg that the investment was primarily in the future of Bitcoin and that there are currently no plans to increase this commitment.
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The move comes after BTC hit a high recently $100,000 barrier for the first time, it has risen by more than 40 percent since Donald Trump won the US presidential election in November.
Trump, who is known for his pro-crypto position, has vowed to create a better regulatory environment for digital goods businesses, which is why he is increasing interest in cryptocurrencies, and has proposed the establishment of a national Bitcoin stockpile.
Despite AMP’s pioneering steps, Australia’s wider pensions sector, estimated at A$4.1 trillion, has shown limited enthusiasm for cryptocurrency investment.
Reserve Bank of Australia Governor Michele Bullock said Bitcoin does not play a significant role for Australians the economy. In addition, regulators have warned that strict risk management procedures should be implemented when dealing with digital assets.
Australia’s superannuation industry has come under scrutiny for a variety of issues, including valuation concerns in unlisted markets, customer service, and investment funds.
Recently, several pension products offered by AMP have failed annual performance tests designed to identify performance below expectations retirement productsmany fail two years in a row.
Crypto ETFs Fuel AMP’s Investment Strategy
The decision to invest in Bitcoin futures reflects the “structural changes” taking place within the digital-asset space, according to AMP’s Chief Investment Officer, Anna Shelley.
He showed the latest launch of exchange rates (ETFs) in the US invest directly in Bitcoin and Ethereum (ETH) by leading investment managers as an important development.
“After careful evaluation and consideration by our investment team and committee, we have placed a small and risk-controlled position in digital assets through our Dynamic Asset Allocation program in May,” explained Shelley.
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Exposure to BTC futures comprises about 0.05% of AMP’s total pension assets, reflecting a cautious but progressive approach digital asset investment by an Australian freight forwarder.
While AMP acknowledges the potential benefits of exposure to cryptocurrencies, the company remains well aware of the risks associated with volatility. Shelley noted that while their pension members have benefited from this exposure, the investment is part of a diversified asset mix and will be managed carefully.
At the time of writing, the market leading crypto is trading at $99,800, registering a slight decrease of 1.1% in the 24-hour period.
Featured image from DALL-E, chart from TradingView.com
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