In a groundbreaking move for the Australian superannuation industry, AMP Ltd., a prominent superannuation and wealth management company distribution about A$27 million (about $17.2 million) to Bitcoin (BTC) futures.
This investment marks AMP as one of the first large Australian superannuation managers to adopt cryptocurrency products, signaling a shift in attitudes towards digital assets within a traditionally conservative sector.
AMP Bitcoin Futures stock price history
AMP's Senior Portfolio Manager, Steve Flegg, announced the decision on LinkedIn, noting that the company had “got involved and made a small allocation to Bitcoin” earlier this year.
A corporate representative told Bloomberg that the investment is primarily in Bitcoin futures and that there are currently no plans to raise this commitment.
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The move comes after BTC's recent gains the $100,000 barrier for the first time, rising more than 40% since Donald Trump won the US presidential election in November.
Trump, known for his pro-crypto stance, has promised to create a more favorable regulatory environment for digital asset enterprises, thus increasing interest in cryptocurrencies, and has proposed establishing a national Bitcoin pool.
Despite AMP's positive steps, the general Australian pension sector, valued at A$4.1 trillion, has shown limited enthusiasm for cryptocurrency investments.
The Governor of the Reserve Bank of Australia, Michele Bullock, has said that Bitcoin does not have a significant role in Australia economy. In addition, regulators have warned that strong risk management practices must be used when dealing with digital assets.
Australia's pensions industry has faced scrutiny over a number 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 underperformance retirement productswith several failing for the second consecutive year.
Crypto ETFs Fuel AMP Investment Strategy
The decision to invest in Bitcoin futures is indicative of the “structural changes” taking place within the digital asset landscape, according to AMP's Chief Investment Officer, Anna Shelley.
She mentioned a recent launch exchange-traded funds (ETFs) in the US that invest directly in Bitcoin and Ethereum (ETH) by directing investment managers as an important development.
“After careful testing and consideration by our investment team and committee, we introduced a small risk-controlled position in digital assets through our Dynamic Asset Relocation program in May,” explained Shelley.
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BTC futures exposure accounts for about 0.05% of AMP's total pension fund, reflecting a cautious but positive approach to digital asset investment by an Australian asset manager.
While AMP recognizes the potential benefits of exposure to cryptocurrencies, the company is still very aware of the associated risks and volatility. Shelley noted that while its pension members have benefited from this release, the investment is part of a highly diversified asset mix and will be managed with a careful eye.
At the time of writing, the market's top crypto is trading at $99,800, registering a slight decrease of 1.1% in the 24-hour time frame.
Featured image from DALL-E, chart from TradingView.com
