AMP Makes History With Bitcoin Investment, Signaling a Shift in Australia's Superannuation Industry

According to a report from Financial Review, AMP's Bitcoin investment represents a conservative 0.05% of its $57 billion in assets under management (AUM).

Australia's largest pension fund, AMP, has made a historic move by allocating a small portion of its assets to Bitcoin, a first for the country's heavily regulated superannuation industry.

The fund's Bitcoin investment, valued at roughly $25 million, represents a conservative 0.05% of its $57 billion in assets under management (AUM).

The allocation is significant as it opens the door for broader institutional adoption of Bitcoin in Australia. Despite being a world leader in crypto regulation, institutional interest in digital assets has remained largely untapped until now.

According to a report from Financial Review, the purchase occurred when Bitcoin traded between $60,000 and $70,000. The move appears to be timed with the asset's historic rally, which saw BTC briefly cross the $70,000 mark in early December following Donald Trump's electoral victory.

The decision to allocate a portion of its portfolio to Bitcoin was driven by its potential as a diversifier and a hedge against traditional market volatility, a strategy that aligns with AMP's goal to maximize long-term returns for its members.

While AMP's bold step has captured attention, other Australian superannuation funds have remained on the sidelines, citing Bitcoin's volatility and perceived risks. Their reluctance underscores the conservative nature of the sector, which is tasked with safeguarding retirement savings under Australia's mandatory superannuation system.

However, with the return that Bitcoin offers, the question remains: how long can they wait before joining the fray?