As a seasoned analyst with over two decades of experience in the financial markets, I find AMP‘s foray into Bitcoin futures investment intriguing and potentially indicative of a broader trend within the pension industry. While Australia’s pension funds have been traditionally reluctant to venture into cryptocurrencies, the approval of Bitcoin ETFs could indeed be a game-changer.
Australian investment firm AMP Limited recently poured about $17.2 million into Bitcoin futures. For now, the company does not intend to make additional Bitcoin investments.
Despite Coinbase making efforts to attract Australia’s pension funds towards Bitcoin investing, the local industry appears to have a low level of enthusiasm or participation in such investments.
AMP Puts Bitcoin in Pensions
Despite Coinbase’s intentional attempts to attract Australian pension fund investments this year, the sector had initially shown a lack of enthusiasm. Nevertheless, Anna Shelley, AMP’s Chief Investment Officer, suggested that structural shifts such as the introduction of Exchange-Traded Funds (ETFs) have altered the investment equation.
According to Shelley, after thorough examination and thoughtful decision-making by our investment experts and board, we added a modest, carefully managed exposure to digital assets within our Dynamic Asset Allocation strategy in May.
Based on Bloomberg’s reports, around 0.5% of AMP’s pension funds were invested in Bitcoin futures. This move was strategically made to support the approval of a Bitcoin ETF in Australia. Now, AMP is admitting that cryptocurrencies could be beneficial for retirement savings, particularly as a means to protect against inflation.
While Shelley suggests that Australia’s ETF approvals were the primary reason behind this investment, it remains unclear if AMP primarily used this as their investment vehicle. Despite Australia being a thriving market for Bitcoin ETFs, this doesn’t necessarily mean that this was AMP’s choice. Though Australian pension funds have demonstrated minimal interest in cryptocurrency, their largest fund heavily invested in Artificial Intelligence last year instead.
Regardless of the circumstances, investments in pensions are on the rise and are making a significant difference in the market for Bitcoin ETFs. The largest fund in Michigan invested $6.6 million into Bitcoin ETFs, later followed by a larger investment in Ethereum. Moreover, South Korea’s National Pension Service invested $34 million into MicroStrategy, which represents a less direct means of investing in Bitcoin.
Recently, Bitcoin has shown impressive growth and positive trajectory. If AMP manages to yield profitable returns from its investment, it could potentially spark increased curiosity across the industry. Currently, though, this pension fund’s Bitcoin futures investment is relatively uncommon, particularly within the Australian financial market.
Recently, the nation has been putting considerable effort into regulating cryptocurrencies. Just last week, AUSTRAC stepped up investigations concerning cryptocurrency Automated Teller Machines (ATMs), claiming that these activities are often linked to rising cybercrimes and money laundering cases.
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2024-12-13 22:02