- AMP becomes the first Australian super fund to invest in Bitcoin, allocating $27 million.
- This investment represents only 0.05% of AMP’s $57 billion assets under management.
- AMP’s move highlights the growing acceptance and adoption of cryptocurrency as a legitimate investment.
- The investment was made back in May when Bitcoin was trading at approximately US $60k and has since increased in value by around 66%.
It’s been a year of firsts for Bitcoin.
First spot ETF in the United States. First time past US $100k (AU $156k).
And now, Bitcoin has recorded yet another first – this time Down Under.
Australia’s billion-dollar super fund AMP unveiled that it had invested a healthy $27m into Bitcoin. This makes AMP the first Aussie retirement fund to add Bitcoin to its assets under management (AUM), signalling a broader shift into the digital asset industry.
Related: Billionaire Executive Urges Investors to Hold BTC, But Not ‘Too Much’
AMP’s $27M Bitcoin Investment Highlights Growing Crypto Adoption
AMP is one of Australia’s largest superannuation funds, holding a whopping $57b in AUM. So, in the grand scheme of things, the $27m of Bitcoin isn’t really that impressive. AMP’s BTC holdings represent a mere 0.05% of the company’s portfolio.
However, the more significant element of the news is the growing adoption and acceptance of cryptocurrency as a legitimate investment.
Even more noteworthy is that AMP made the investment back in May, meaning they nabbed Bitcoin when it was trading at approximately US $60k (AU $94k). BTC has climbed approximately 66% since then.
Crypto “Too Big” to Ignore, AMP Says
The managers at AMP were cautious, but optimistic about Bitcoin’s long-term potential.
In a LinkedIn post, Senior Portfolio Manager Steve Flegg confirmed the investment that crypto and Bitcoin were “too big” to ignore.
Speaking to InvestorDaily, AMP’s Head of Portfolio Management, Stuart Eliot, was careful to temper expectations.
[AMP decided to invest in] a small and risk-controlled position…While our super members have benefited from the exposure, we fully appreciate the risk and volatility characteristics of this emerging asset class and will continue to carefully manage our holding.
AMP’s Head of Portfolio Management, Stuart EliotDespite being guarded, the news represents a breakthrough day for Australian investors as the country looks to become more receptive to the digital assets scene.
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