Australian wealth manager AMP invests $27m in Bitcoin as first major superannuation fund to embrace crypto

AMP has become the first major superannuation fund to enter the crypto market in Australia, investing $27 million in Bitcoin.

AMP Wealth Management, one of Australia’s largest asset managers with billions of dollars in assets, invested $27 million in Bitcoin (BTC), becoming the first major pension fund to do so in the country, according to information obtained by the Australian Financial Review.

According to 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, which represents 0.05% of the firm’s $57 billion in assets, is part of a broader diversification strategy.

Despite AMP’s investment, other pension funds have also signaled they do not plan to follow suit in crypto, according to the AFR. For example, another superannuation fund, AustralianSuper, has made it clear that it has “no plans to invest directly in cryptocurrencies at this time” while it is exploring blockchain technology.

Commenting on the move, AMP senior portfolio manager Steve Flegg explained in his LinkedIn report that the firm “thinks that although cryptocurrency in general is risky, new and not yet fully proven,” the asset “has become very large and has potential.” It’s too great to keep ignoring.

Meanwhile, Australia is working to close regulatory loopholes in the crypto sector and bring it into line with existing financial laws. As crypto.news previously reported, the Australian Securities and Investments Commission has announced proposals for tighter oversight of the crypto market aimed at improving “consumer protection.”