In a groundbreaking move for the Australian pension industry, AMP Ltd., a prominent pension and wealth management firm, has allocated approximately A$27 million (around $17.2 million) to Bitcoin (BTC) futures.
This investment marks AMP as one of the first major retirement managers in Australia to embrace cryptocurrency products, reflecting a shift in attitudes toward digital assets within a traditionally conservative sector.
AMP’s Bitcoin Futures Investment
AMP’s Senior Portfolio Manager, Steve Flegg, announced the decision on LinkedIn, noting that the firm “took the plunge and made a modest allocation to Bitcoin” earlier this year.
A corporate representative told Bloomberg that the investment was primarily in Bitcoin futures and that there are currently no intentions to raise this commitment.
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The move comes after BTC recently reached the $100,000 barrier for the first time, rising by more than 40% since Donald Trump’s victory in the US presidential election in November.
Trump, known for his pro-crypto position, has vowed to create a more favorable regulatory environment for digital-asset enterprises, hence increasing interest in cryptocurrencies, and has proposed the establishment of a national Bitcoin stockpile.
Despite AMP’s pioneering steps, the broader Australian pension sector, valued at A$4.1 trillion, has shown limited enthusiasm for cryptocurrency investments.
Reserve Bank of Australia Governor Michele Bullock has stated that Bitcoin does not play a significant role in the Australian economy. Furthermore, regulators have cautioned that robust risk management practices must be employed when engaging with digital assets.
The Australian pension industry has faced scrutiny over various 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 underperforming retirement products, with several failing for a second consecutive year.
Crypto ETFs Fuel AMP’s Investment Strategy
The decision to invest in Bitcoin futures is indicative of the “structural changes” occurring within the digital-assets landscape, according to AMP’s Chief Investment Officer, Anna Shelley.
She pointed to the recent launch of exchange-traded funds (ETFs) in the US that invest directly in Bitcoin…
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