Australia’s fifth-largest pension fund is reportedly considering allocating capital to the crypto markets.
The Financial Times reports that Queensland Investment Corporation (QIC), which manages $69 billion worth of assets, is open to making cryptocurrency investments in the future even as it remains cautious of the nascent digital asset space.
QIC’s head of currencies Stuart Simmons attributes the big funds’ hesitancy to the regulatory risks of digital assets amid a lack of clarity on how governments and watchdogs would oversee the crypto space.
Simmons says that large investors want more regulatory certainty and protection against fraud, theft, market manipulation and other “unquantifiable risks”, but may likely seek out exposure to crypto once the market matures.
He adds that clearer regulatory requirements can also make conservative investors feel more at ease with putting their money on digital assets.
“Right now there are a number of uncertainties, and the operational infrastructure for institutional investing remains immature…
I don’t think there’s an inevitability about super funds and the institutional market investing in crypto, but as the segment matures … there’s a likelihood that super funds seek out exposure…
As the framework continues to develop, super funds may eventually simply be responding to user demand by facilitating investment in crypto.”
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Credit: Source link
