AMP becomes the first Australian super fund to invest in Bitcoin, allocating $27 million. The investment represents just 0.05% of AMP's $57 billion in assets under management. AMP's move highlights the growing acceptance and adoption of cryptocurrencies as legitimate investments. The investment was made in May when Bitcoin was trading at around US$60,000 and has since increased in value by around 66%.
This year was a year of firsts for Bitcoin.
America's first spot ETF. For the first time, it exceeded US$100,000 (A$156,000).
And now, Bitcoin has achieved yet another first – this time Down Under.
Australia's multi-billion dollar super fund AMP has revealed it has invested the equivalent of $27 million in Bitcoin. This makes AMP the first Australian retirement fund to add Bitcoin to its assets under management (AUM), signaling a broader move into the digital asset industry.
Related article: Billionaire executive urges investors to hold BTC, but not “too much”
AMP’s $27 million Bitcoin investment highlights growing adoption of cryptocurrencies
AMP is one of Australia's largest pension funds, with total assets under management of a whopping $57 billion. So, in the grand scheme of things, $27 million in Bitcoin isn't all that impressive. AMP's BTC holdings represent only 0.05% of its portfolio.
But the more important element of this news is the increasing adoption and acceptance of cryptocurrencies as legitimate investments.
Even more noteworthy is that AMP made an investment in May. This means they got their hands on Bitcoin when it was trading at around US$60,000 (AU$94,000). Since then, BTC has risen about 66%.
Cryptocurrency is 'too big' to ignore, says AMP
AMP managers were cautious but optimistic about Bitcoin's long-term potential.
In a LinkedIn post, senior portfolio manager Steve Flegg acknowledged that cryptocurrencies and Bitcoin are “too big” investments to ignore.
Stuart Elliott, head of portfolio management at AMP, was careful to temper expectations in an interview with InvestorDaily.
[AMP decided to invest in] Small, risk-managed positions…While our super members benefit from the exposure, we are well aware of the risk and volatility characteristics of this emerging asset class and will continue to manage our holdings carefully. I will continue to do so.
Stuart Eliot, Head of Portfolio Management, AMP
Despite the caution, the news represents a landmark day for Australian investors as they look to become more accepting of the digital asset scene.
