• AMP becomes one of Australia’s first pension funds to invest in Bitcoin futures.  
• Australian pension system remains cautious, with limited crypto asset inclusion.  
• Global pension funds, like Michigan and South Korea, are exploring digital assets.

AMP Ltd., an Australian pension fund with $57 billion in assets, has entered the crypto market by investing $27 million in Bitcoin. This investment makes AMP one of the first asset holders in Australia to invest in digital assets.

However, the Australian pension system, valued at $4.1 trillion, has been hesitant to embrace crypto assets. Most pension funds are worried about putting digital assets in their portfolios.

Steve Flegg, AMP’s Senior Portfolio Manager, explained that the firm’s Bitcoin futures investment is part of its plan to adjust to the expanding digital assets market. Furthermore, AMP’s Chief Investment Officer, Anna Shelley, pointed out that the investment in Bitcoin futures represents just 0.05% of the company’s total pension assets.

This move comes after a year of digital asset changes, including the launch of Bitcoin and Ether ETFs by major investment managers. These products have helped make crypto investment more accessible to traditional financial markets, which may have swayed AMP’s decision to buy Bitcoin futures.

Regulatory Caution and Risk Management

Australia’s regulatory stance on crypto assets is cautious. The Reserve Bank of Australia stated that Bitcoin has no role in the Australian market. Also, the Australian Prudential Regulation Authority stressed the importance of strong risk management measures when handling digital assets.

AMP acknowledged Bitcoin’s high volatility and promised to manage the exposure carefully. Even so, AMP’s investment falls under its Dynamic Asset Allocation program, which uses a controlled and diversified approach to risk.

Global Trends in Pension Fund Crypto Investments

AMP’s cautious investment in Bitcoin’s future aligns with the rising trend of pension funds adding digital assets.

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Michigan’s state pension fund put $6.6 million into a Bitcoin ETF, while South Korea’s National Pension Service grew its holdings by purchasing shares in MicroStrategy. Likewise, Jersey City’s pension fund announced its plans to get Bitcoin ETFs.