AMP Makes $27 Million Bitcoin Investment, Becoming Australia's First Major Superannuation Fund to Enter 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)

Australian wealth management giant AMP has made a $27 million foray into the crypto market, making it the first major superannuation fund in the country to do so, according to a report by the Australian Financial Review.

The report states that the investment was made in May, when Bitcoin was trading between $60,000 and $70,000. According to Anna Shelley, chief investment officer at AMP, the allocation is part of a broader diversification strategy, with crypto forming a small part of the firm's overall portfolio.

"We've made a small allocation to Bitcoin as part of our broader alternatives strategy, which includes private markets, commodities, and inflation," Shelley told the AFR.

The move by AMP comes amid growing interest from institutional investors in cryptocurrencies, despite concerns over volatility and regulatory uncertainty. In the U.S., several pension funds, including the Houston Firefighters' Relief and Pension Fund, have already allocated a portion of their portfolios to crypto.

However, other superannuation funds in Australia have indicated that they are not planning to follow suit, at least for now. For instance, another superannuation fund, AustralianSuper, has stated that while it is exploring blockchain technology, it "does not have any current plans to invest directly in cryptocurrencies."

"We continue to monitor and assess the regulatory landscape, technological advancements, and member feedback in this rapidly evolving space," an AustralianSuper spokesperson told the AFR.

Meanwhile, AMP senior portfolio manager Steve Flegg commented on the firm's decision to invest in crypto in a LinkedIn post.

"We generally thought that even though crypto is risky, new and not yet fully proven, the asset class had become too big, and its potential too great to continue to ignore," Flegg wrote.

In a separate development, the Australian Securities and Investments Commission (ASIC) has unveiled proposals for stricter oversight of the crypto market, aiming to enhance "consumer protection."

The proposals, outlined in a consultation paper, include measures to ensure crypto exchanges are licensed and subject to ongoing supervision, as well as rules to govern the promotion, offer, and sale of crypto-related products or services.

"The proposals in this consultation paper aim to strengthen the regulatory framework for crypto-assets and close the remaining regulatory gaps to ensure crypto-assets are integrated into Australia's financial system in a way that supports innovation and aligns with the government's objectives," ASIC said in a statement.

The proposals will be open for public feedback until Oct. 14, following which ASIC will consider the submissions and announce its final decision on the matter.