Bank

Bitcoin

Steve

Australia’s largest super fund, AMP, has invested $27 million of its portfolio in Bitcoin, making it the first major fund to venture into the cryptocurrency market. 
AMP’s decision to enter into the digital asset sector comes despite the critical view from many quarters. One of the skeptics is Reserve Bank of Australia’s (RBA) Governor Michele Bullock, who has expressed doubts about cryptocurrency’s place in the Australian economy. 
<h3 id="span-style-font-weight-400-amp-is-adopting-bitcoin-to-diversify-its-portfolio-span">AMP is adopting Bitcoin to diversify its portfolio</h3> 
According to Shelley, AMP’s dynamic asset allocation process identified Bitcoin’s substantial market momentum and sentiment, which were the main drivers of the move to diversify. 
According to <a href="https://www.afr.com/companies/financial-services/amp-first-big-super-fund-to-buy-into-crypto-20241212-p5kxwj" rel="nofollow noopener" target="_blank">reports</a>, the investment took place in May, when Bitcoin traded between $60,000 and $70,000. According to AMP chief investment officer Anna Shelley, just 0.05% of the company’s $57 billion in assets are allocated, which fits a larger diversification plan. 
Bitcoin’s latest rally to $100,000 per coin comes as the pivot, spurred by a market bull run following Donald Trump’s re-election and his new administration’s crypto-friendly attitude. 
Despite the risks, the fund had “taken the plunge,” said Steve Flegg, Senior Portfolio Manager at AMP, on LinkedIn. According to him, the cryptocurrency was simply too big to ignore in terms of growth and potential. 
<h3 id="span-style-font-weight-400-other-super-funds-are-all-over-the-spectrum-span">Other super funds are all over the spectrum&nbsp;&nbsp;</h3> 
AustralianSuper said it was focused on blockchain technology and indirect investments in companies that use it while confirming no current plans to invest directly in cryptocurrencies. 
Australian Retirement Trust and retail super giant MLC have displayed some interest but with a considerable level of caution. Per the AFR report, they have no plans to follow in AMP’s footsteps. 
Shelley said the current allocation is at the upper limit for this asset class, but the fund will manage its holdings. Those with investments in AMP’s balanced and growth options will be the most exposed to Bitcoin at the customer level. 
Recently, ASIC (Australian Securities and Investments Commission) expanded its regulatory framework for cryptocurrency. It <a href="https://www.cryptopolitan.com/australias-asic-updates-to-crypto-guidance/">proposed</a> to protect consumers while also encouraging responsible innovation in the crypto sector. 
From Zero to Web3 Pro: Your 90-Day <a href="https://www.cryptopolitan.com/crypto-career-launchpad-waitlist/?utm_source=cryptopolitan&amp;utm_medium=banner&amp;utm_campaign=ccl-waitlist-3" target="_blank">Career Launch Plan</a>

AMP invests $27M in Bitcoin for the first time

Table of Contents

Cryptopolitan_News

Other articles published on Dec 12, 2024

Nvidia faces legal action from shareholders over crypto revenue

Brian Quintenz Seeks CFTC Leadership Role

Official Whitepaper: Moodeng MDB - The Future of Crypto & Community

BTFD Coin Sizzles Among the Best Meme Coins to Buy Today as Pepe Coin Sees Volume Spike and Snek ...

Bullish SHIB Chart Indicators Hints at a Pump Over 180% Amid the Start of Altseason, New ATH Ahead?

Why Millions Trust BitcoinSi for Crypto Trading in 2024

Join our free newsletter for daily crypto updates!