Australian pension fund considers crypto investment

One of Australia’s largest pension funds says it may make a small investment in the crypto sector. This is another sign that retirement vehicles are taking digital asset space seriously, despite regulatory risk.

Queensland Investment Corporation (QIC), which manages A $ 92.4 billion ($ 69 billion) in assets and is Australia’s fifth largest pension fund, tells the Financial Times that it is open to investing in cryptocurrencies in the future. Told. While many family offices and other retail investors in the country have already invested in digital assets, Australia’s so-called “supermarkets”, which collectively manage the retirement savings of millions of people, have taken the plunge. Refused to act.

According to Stuart Simmons, QIC’s currency director, early inflows into digital assets are likely to be “more trickles than floods.”

For conservative pension fund managers, the move to the crypto market represents a major departure from traditional asset allocation strategies. So far, they have been away from the crypto market, with a few exceptions.Two Virginia-based US pension funds have plummeted, while CDPQ (Canada’s second largest pension fund) has recently plummeted. Jointly Leads $ 400 Million Financing Round of Cryptocurrency Lending Platform Celsius Network..

In Europe, due to the high reputation and regulatory risks associated with digital assets, large managers are hesitant to get involved in this space publicly.

“I don’t think there is a necessity in the institutional market for investing in superfunds and crypto, but as the segment matures … superfunds may look for exposure,” Simmons told FT.

The cryptocurrency market has exploded in size over the past year at a rally that has attracted the attention of yield-hungry investors around the world. In late September, Victor Smorgon Group, a family office of Australian industrial families, said it acquired a stake in Melbourne-based digital asset manager Zerocap a year after Billionaire’s wealth manager first invested in Bitcoin. Said.

However, various risks remain in the world of cryptocurrencies, which can discourage huge amounts of money from jumping in. More regulatory certainty and more protection against “unquantifiable risks” such as fraud, theft and market manipulation.

But as regulatory requirements become clearer and the industry matures from the wildwest market to a more specialized market, conservative investors will find their investments more comfortable, Simmons said. He said the entry of major banks and other financial institutions “emphasizes the opportunities recognized by the potential for crypto investment.”

“As the framework continues to evolve, superfunds may ultimately simply meet user demand by facilitating investment in cryptography,” he said.

Not all funds are convinced. Andrew Fisher, Queensland-based head of asset allocation for Sunsuper, which manages A $ 85 billion ($ 63 billion) in assets, said he was interested in the underlying technology of cryptocurrencies. However, Bitcoin and other coins are “interests and focus”.

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