Australia’s pension fund AMP has become the first major superannuation fund to buy into crypto by purchasing Bitcoin worth $27 million. The asset class previously barred for high volatility by big fund managers has now ignited FOMO as BTC price surpassed the $100K milestone after Donald Trump’s win in the U.S. presidential election.
Pension Giant AMP Invests $27 Million in Bitcoin
$57 billion AMP becomes Australia’s first major pension fund to buy Bitcoin, reported Australian Financial Review on December 12. They are the first in the $4 trillion retirement savings industry to invest in the crypto asset class.
Other big pension funds claimed they would not be following AMP’s lead into the cryptocurrency market. Earlier, Reserve Bank Governor Michele Bullock criticized ideas to invest in crypto assets, saying it does not belong in retirement portfolios.
AMP chief investment officer Anna Shelley said $27 million – or 0.05 percent of its $57 billion in funds under management – of BTC was purchased in May. BTC price was trading in the $60,000-$70,000 range. The investment was part of a diversification strategy after AMP’s dynamic asset allocation process backed Bitcoin based on its “momentum and sentiment.”
Bitcoin Rally to $100K Driving Mainstream Adoption
Matthew Sigel, head of digital assets research at VanEck, said those with assets in AMP’s balanced and growth investment options were the most likely to be exposed to Bitcoin at a customer level.
Pension funds across the globe eyes investing in Bitcoin, especially after the U.S. SEC approved spot Bitcoin ETF earlier this year. Recently, UK pension fund giant Cartwright joined the league and allocated around 3% to Bitcoin as a direct investment.
Hedge funds have jumped to buy Bitcoin and pension funds are in discussions with clients to invest in BTC. However, it is delayed because of the long due diligence process of pension funds.
BTC price currently trades at $100,837, up nearly 20% in a month. Bitcoin hit a high of $104K amid the Trump trade and transition to pro-crypto administration in the United States.
The post $57B AUM Australia’s Pension Fund AMP Buys $27M in Bitcoin appeared first on CoinGape.
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