Key Points
- AMP Wealth Management has invested $27 million in Bitcoin, a first for major Australian superannuation funds.
- Despite AMP’s move, other superannuation funds in Australia do not plan to invest in cryptocurrencies.
AMP Wealth Management, a leading wealth manager in Australia, has made a significant investment in Bitcoin (BTC).
The $27 million investment marks the first time a major superannuation fund in the country has ventured into the cryptocurrency market, according to the Australian Financial Review.
Investment Details and Market Reaction
The investment was made in May when Bitcoin was trading between $60,000 and $70,000.
Anna Shelley, AMP’s chief investment officer, stated that this allocation, which equates to 0.05% of the company’s $57 billion in assets, forms part of a broader diversification strategy.
However, other superannuation funds in Australia have indicated they will not be following AMP’s lead into the crypto market. For instance, AustralianSuper, another superannuation fund, stated that while it is exploring blockchain technology, it has no immediate plans to invest directly in cryptocurrencies.
AMP’s Perspective and Regulatory Developments
Steve Flegg, AMP’s senior portfolio manager, shared in a LinkedIn post that despite the risks and the newness of crypto, the asset has become too significant and its potential too vast to ignore.
Meanwhile, Australia is working on tightening regulatory gaps in the crypto sector to align it with existing financial laws. The Australian Securities and Investments Commission has proposed stricter oversight of the crypto market, aiming to enhance consumer protection.