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In a groundbreaking move for the Australian pensions industry, AMP Ltd., a leading wealth and pensions management company, has <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-12-13/australian-pension-fund-reveals-rare-wager-on-bitcoin–btc-futures?utm_medium=social&utm_campaign=socialflow-organic&utm_source=twitter&utm_content=crypto” target=”_blank” rel=”nofollow”>assigned approximately 27 million Australian dollars (about 17.2 million dollars) worth of bitcoin (btc) futures.
This investment makes AMP one of the first major superannuation administrators in Australia to adopt cryptocurrency products, reflecting a shift in attitudes towards digital assets within a traditionally conservative sector.
Investing in AMP bitcoin Futures
AMP Senior Portfolio Manager Steve Flegg announced the decision on LinkedIn, noting that the firm “took the plunge and made a modest allocation to bitcoin” earlier this year.
A corporate representative told Bloomberg that the investment was primarily in bitcoin futures and that there are currently no intentions to increase this commitment.
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The move comes after btc recently reached the $100,000 barrier for the first time, rising more than 40% since Donald Trump's victory in the US presidential election in November.
Trump, known for his pro-cryptocurrency stance, has promised to create a more favorable regulatory environment for digital asset companies, thereby increasing interest in cryptocurrencies, and has proposed the establishment of a national bitcoin reserve.
Despite AMP's pioneering steps, the broader A$4.1 trillion Australian pensions sector has shown limited enthusiasm for cryptocurrency investments.
Reserve Bank of Australia Governor Michele Bullock has stated that bitcoin does not play a major role in the Australian market. economy. Additionally, regulators have warned that strong risk management practices should be employed when interacting with digital assets.
The Australian pensions industry has faced scrutiny over a range of issues, including valuation concerns in unlisted markets, customer service and investment fees.
Recently, many pension products offered by AMP failed an annual performance test designed to identify underperforming companies. retirement productsand several failed for the second year in a row.
crypto ETFs Boost AMP Investment Strategy
The decision to invest in bitcoin futures is indicative of the “structural changes” taking place in the digital asset landscape, according to AMP chief investment officer Anna Shelley.
He noted the recent launch of exchange traded funds (ETFs) in the US investing directly in bitcoin and ethereum (eth) by leading investment managers as a significant development.
“After testing and careful consideration by our team and investment committee, we included a small, risk-controlled position in digital assets through our Dynamic Asset Allocation program in May,” Shelley explained.
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btc futures exposure constitutes approximately 0.05% of AMP's total pension assets, illustrating a cautious but progressive approach to investment in digital assets by the Australian asset manager.
While AMP recognizes the potential benefits of cryptocurrency exposure, the firm remains acutely aware of the associated risks and volatility. Shelley noted that while its retired members have benefited from this exposure, the investment is part of a highly diversified asset mix and will be managed with careful oversight.
At the time of writing, the market-leading cryptocurrency is trading at $99,800, recording a slight decline of 1.1% in the 24-hour period.
Featured image of DALL-E, chart from TradingView.com
