AMP’s Bold Move into Bitcoin
Australian superannuation giant AMP has garnered significant attention by investing $27 million in Bitcoin, becoming the first major superannuation fund in Australia to embrace cryptocurrency. This trailblazing decision, reported by Financial Review, highlights AMP’s commitment to innovation in portfolio diversification.
AMP manages $57 billion AUM, and its holding in Bitcoin is only 0.05% of that. The fund bought the leading cryptocurrency in May this year, when it was between $60,000 and $70,000, looking to ride its momentum after Donald Trump’s November 5, 2024 re-election. Since then, the price of Bitcoin has soared well past the $100,000 mark, thus making huge returns.
Institutional Resistance Remains
Despite the groundbreaking move by AMP, most superannuation funds in Australia remain cautious, citing volatility and regulatory uncertainties around Bitcoin. While the exposure of AMP to Bitcoin is conservative, the move underlines a progressive approach to portfolio diversification into emerging assets.
Pension Funds Turn to Bitcoin Around the World
The AMP investment is part of a broader trend as pension funds worldwide start exploring Bitcoin.
Michigan Pension Fund and Bitcoin ETF Exposure
In July 2024, Michigan’s state pension fund revealed a $6.6-million investment in ARK 21Shares’ Bitcoin ETF, its foray into the crypto space.
South Korea’s NPS and MicroStrategy Bet
South Korea’s National Pension Service, or NPS, followed suit in August with the purchase of 24,500 shares of MicroStrategy, known for holding a large amount of Bitcoin. For market participants, this is an indirect, but leveraged investment in Bitcoin.
Florida Advocates for Bitcoin Adoption
In October, Florida’s public pension fund, which is directed by Jimmy Patronis, was the first to move in as an advocate of direct investment in Bitcoin, which became one more indication of growing interest from US state-level pension funds in this asset.
UK Pension Fund Allocates 3% to Bitcoin
In November, a UK-based firm followed suit with the allocation of 3% of its portfolio in Bitcoin. According to Sam Roberts, investment director at Cartwright, the risk-return profile of Bitcoin remains unparalleled:.
Paving the Way for Institutional Adoption
AMP’s investment in Bitcoin may encourage other institutional players in Australia to follow suit. With global pension funds increasingly looking to get into cryptocurrency, AMP’s daring move places it at the forefront of institutional crypto adoption. This now signals the possible start of interest in Bitcoin among conservative investment vehicles.
