Bitcoin's surge makes pension funds restless? Large Australian pension fund makes rare allocation to BTC.

On December 13th, Cailian Press reported that (editor Liu Rui) this year is definitely a jubilant year for BTC investors. Last week, the price of BTC broke through the $100,000 mark for the first time, and the market's optimistic expectations for cryptocurrency reached its peak.

However, due to the volatility of Bitcoin (BTC), global large fund management companies have been avoiding BTC.

However, recently, AMP Ltd, an Australian pension and wealth management company, revealed that AMP had previously invested AUD 27 million in BTC, becoming the first large retirement fund in the country to buy BTC.

Rare allocation of BTC in Australian large pension funds

Recently, Stephen Flegg, the Senior Portfolio Manager of AMP, stated on LinkedIn that AMP has taken a risk as Bitcoin has had a 'stormy' year.

“We generally believe that although cryptocurrency is risky, new, and not yet fully proven, its potential is too great to continue to be ignored.”

AMP's Chief Investment Officer Anna Shelley stated that in May this year, AMP invested about 27 million Australian dollars to purchase BTC, which accounts for only 0.05% of its managed 57 billion Australian dollars. At that time, the trading price of BTC was between 60,000 and 70,000 US dollars. She said that this investment is part of AMP's diversification strategy.

BTC/USD price trend since the beginning of the year

Earlier this month, Bitcoin first broke through the six-digit barrier of $100,000, meaning this investment has brought considerable returns to AMP.

Most peers do not agree.

This move by AMP is somewhat of an anomaly in Australia, as the official stance on BTC is not recognized.

Reserve Bank of Australia Governor Michele Bullock previously stated that Cryptocurrency has no status in the Australian economy. At the same time, critics also argue that pension fund management companies should not include Cryptocurrency in their investment portfolios because it does not generate returns.

On Thursday local time, other major funds said they would not follow AMP into the cryptocurrency field, citing the riskiness of the asset.

A spokesperson for AustralianSuper, a retirement fund, said that although the company "views blockchain technology as a potential investment opportunity and has made some small investments in companies that use the underlying technology in other ways, AustralianSuper currently has no plans to directly invest in cryptocurrency".

Richard Horton, an economics professor at the University of New South Wales, said that AMP's attempt with Bitcoin is an important moment for this risky asset.

Professor Houlton predicts, "When the (U.S.) President-elect says it is a legitimate asset class, the phenomenon of large funds allocating BTC will not disappear quickly, only grow. In this context, it is understandable that fund managers hope to hold moderate exposures. However, I am indeed concerned that investors will put most of their retirement savings or other savings outside of professionally managed pension funds."

Attitudes vary greatly among different people

Former Assistant Governor of the Reserve Bank of Australia and current Chief Economist of the West Pacific Bank Group, Luci Ellis, declined to comment on the AMP's purchase of BTC, but her attitude is clearly not positive. She emphasized that it is important to remember that cryptocurrency does not fulfill the functions of currency.

"It has no stable value, unless in very rare cases, you can't really use it for payment, and it has no continuous income. It does not give you the right to receive continuous dividends like stocks, nor does it give you the right to receive continuous interest payments like bonds."

In stark contrast, Caroline Bowler, CEO of Australian cryptocurrency exchange BTC Markets, said she was very excited to see AMP investing in BTC.

"The encryption market has become too important to ignore. It's not just hype, it's the real potential of BTC as part of a diversified investment strategy," Bowler likened the investment to backing tech stocks in the '90s, "The digital asset class is still in its infancy, just like the internet in the '90s." Those who didn't see the value of tech stocks at the time missed out on a revolution. ”

(Finance Network Liu Rui)

Source: Sina

Author: Sina.com