Thomas Daniels
The $27 million Bitcoin investment by AMP Wealth Management, a well-known Australian financial firm that oversees $57 billion in assets, has garnered media attention. According to an Australian Financial Review story, this strategic allocation is the first time a significant Australian pension fund has made an entry into the Bitcoin market.
The investment, which accounted for 0.05% of AMP’s total assets, was made in May when Bitcoin values were between $60,000 and $70,000. Anna Shelley, Chief Investment Officer, emphasized that the action is consistent with AMP’s overall diversification plan.
Other superannuation funds are still hesitant to invest in digital assets, even in light of AMP’s innovative move. For example, AustralianSuper has declared that while it is actively investigating blockchain applications, it does not currently have any plans to make direct cryptocurrency investments.
Steve Flegg, senior portfolio manager at AMP, explained the choice on LinkedIn, pointing out that cryptocurrency assets are still in their infancy and have inherent risks. However, he stressed that the asset class has become “too significant, with too much potential to ignore.”
Australian officials are stepping up their scrutiny of the cryptocurrency industry in the meanwhile. In an effort to strengthen consumer protection, the Australian Securities and Investments Commission (ASIC) has suggested more stringent regulatory frameworks to bring bitcoin operations into line with conventional financial regulations.
Even if regulatory clarity develops, AMP’s action might mark a sea change in Australia’s institutional use of cryptocurrency.
