AMP has made a $27 million investment in Bitcoin, becoming the first major superannuation fund in Australia to enter the crypto market.
AMP, one of Australia’s major superannuation funds, has made a $27 million investment in Bitcoin (BTC), marking the first significant move by a large super fund into the crypto market, according to a report by the Australian Financial Review.
The report, which was published on Monday, signals a small but notable shift in how some super funds are approaching their investment strategies as institutions continue to experiment with new technologies.
The AMP investment, which was made in May, comes at a time when Bitcoin’s price was trading in the range of $60,000 to $70,000. The allocation, which represents 0.05 percent of the firm’s $57 billion in assets, is part of a broader diversification strategy.
However, despite AMP’s move, other superannuation funds have made it clear that they do not plan to follow suit into crypto at this time.
Another superannuation fund AustralianSuper noted that while it’s exploring blockchain technology, it “does not have any current plans to invest directly in cryptocurrencies.”
According to AMP senior portfolio manager Steve Flegg, the firm “generally thought that even though crypto is risky, new and not yet fully proven,” however, the asset “had become too big, and its potential too great to continue to ignore.”
As part of its broader strategy, AMP is also investing in private markets, equities and bonds, with the aim of achieving sustainable returns for members over the long term.
Its move into Bitcoin comes as part of a broader trend of institutional interest in crypto. In recent months, several major corporations, including Tesla and MicroStrategy, have made significant investments in Bitcoin.
The growing adoption of crypto by mainstream institutions could lead to further price gains in the long run. However, it’s worth noting that crypto remains a volatile asset class and any investment carries risk.
