AMP has made a $27 million investment in Bitcoin, becoming the first major superannuation fund in Australia to enter the crypto market.
AMP Wealth Management, one of Australia‘s largest wealth managers with billions in assets under management, has invested $27 million in Bitcoin (BTC), becoming the first major superannuation fund in the country to do so, the Australian Financial Review has learned.
Per the report, the investment was made in May when Bitcoin was trading between $60,000 and $70,000. AMP chief investment officer Anna Shelley explained that the allocation, representing 0.05% of the firm’s $57 billion in assets, was part of a broader diversification strategy.
Despite AMP’s investment, other superannuation funds have signaled that they do not plan to follow suit into crypto, the AFR notes. For example, another superannuation fund AustralianSuper made it clear that while it’s exploring blockchain technology, it “does not have any current plans to invest directly in cryptocurrencies.”
Commenting on the move, AMP senior portfolio manager Steve Flegg explained in a LinkedIn report that the firm “generally thought that even though crypto is risky, new and not yet fully proven,” however, the asset “had become too big, and its potential too great to continue to ignore.”
Australia, in the meantime, is working to close regulatory loopholes in the crypto sector and align it with existing financial laws. As crypto.news reported earlier, the Australian Securities and Investments Commission has unveiled proposals for stricter oversight of the crypto market, aiming to enhance “consumer protection.”
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