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In a pioneering move for the Australian superannuation industry, AMP Ltd., a prominent superannuation and wealth management firm, has… Customized Nearly $27 million AUD (about $17.2 million USD) worth of Bitcoin (BTC) futures contracts.
This investment marks AMP as one of the first major superannuation managers in Australia to adopt crypto products, reflecting a shift in attitudes towards digital assets within a traditionally conservative sector.
Investing in Bitcoin Futures from AMP
Steve Fleig, AMP’s senior portfolio manager, announced the decision on LinkedIn, noting that the company “took the initiative and allocated a modest amount to Bitcoin” earlier this year.
A company representative told Bloomberg that the investment was primarily in Bitcoin futures and that there is currently no intention of lifting that commitment.
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The move comes after the recent arrival of BTC The $100,000 barrier For the first time, it has risen by more than 40% since Donald Trump won the US presidential election in November.
Trump, known for his pro-cryptocurrency stance, has pledged to create a more favorable regulatory environment for digital asset institutions, thus increasing interest in cryptocurrencies, and has proposed creating a national stockpile of Bitcoin.
Despite AMP’s pioneering steps, the broader Australian superannuation sector, worth A$4.1 trillion, has shown limited enthusiasm for cryptocurrency investments.
Reserve Bank of Australia Governor Michelle Bullock stated that Bitcoin does not play a significant role in the Australian market economy. Furthermore, regulators have warned that robust risk management practices must be used when dealing with digital assets.
The Australian superannuation industry has faced scrutiny over various issues, including valuation concerns in unlisted markets, customer service, and investment fees.
Recently, several retirement products offered by AMP have failed an annual performance test designed to identify poor performance Retirement productswith many of them failing for the second year in a row.
Cryptocurrency ETFs feed into AMP’s investment strategy
The decision to invest in bitcoin futures signals “structural changes” taking place in the digital asset landscape, according to AMP’s chief investment officer, Anna Shelley.
She noted its recent launch Exchange-traded funds (ETFs) in the US that invest directly in Bitcoin and Ethereum (ETH) by leading investment managers as an important development.
“After careful testing and consideration by our team and investment committee, we included a small, risk-controlled position in digital assets through our dynamic asset allocation program in May,” Shelley explained.
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Exposure to BTC futures constitutes approximately 0.05% of AMP’s total pension assets, demonstrating the cautious and progressive approach to… Investing in digital assets By an Australian asset manager.
While AMP acknowledges the potential benefits of exposure to cryptocurrencies, the Company remains fully aware of the risks and volatility associated with them. Shelley noted that although their retired members have benefited from this exposure, the investment is part of a highly diversified asset mix and will be managed with close oversight.
At the time of writing, the market-leading cryptocurrency is trading at $99,800, registering a slight decline of 1.1% on the 24-hour time frame.
Featured image of DALL-E, chart from TradingView.com
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