Australian Pension Fund Rest Super will be the first pension fund in the country to invest in cryptocurrency.
The fund has over $ 46.8 billion in total assets (AUM) and approx. 1.8 million members. Retirement is equivalent to a 401k or IRA in the United States and is mandatory for all employees. So far, the $ 2.4 trillion sector has been very vigilant against cryptocurrencies.
During Rest Super’s annual general meeting on November 23, the company’s chief investment officer, Andrew Lyell, told participants that the company views digital assets as “an important part” of its portfolio in the future, but will continue “with caution and caution”. notes that:
“This is still a very volatile investment, so whatever impact we make on cryptocurrencies is likely to be part of our diversified portfolio in the form of a fairly small initialization that can take shape over time.”
Lyell continued his view that giving participants access to cryptocurrency and blockchain technology could provide a “sustainable source of value” at a time when investors are flocking to cryptocurrencies as a hedge against cash-based inflation.
“I think this could be a good place to invest in a time of inflation,” he said.
After the CIO’s speech, a spokesman for the rest emphasized in a statement that he “certainly sees cryptocurrency as a way to diversify our members’ pension savings [but] will not invest in the near future.”
“We are currently conducting extensive investigations of the asset class before making any decisions,” the spokesman said. “We are also looking at safety and regulatory aspects of investing in this category.”
The comments contrast with those from the Australian Super this week, where the CEO of the $ 167 billion fund, Paul Schroeder, said on Monday that “we do not see cryptocurrencies as an investment opportunity for our members”.
It was reported last month that the state-owned Queensland Investment Corporation (QIC) is seeking access to cryptocurrencies. However, the company Business Insider said this week that the reports were “misinterpreted” and downplayed all the steps taken to implement the digital resource.
Stuart Simmons, head of QIC’s currency department, said that although he expects pension funds to switch to crypto in the future, “this is likely to be a small flood instead of a flood.
The discussion comes at a possible optimistic time for the Australian crypto market after a Senate committee prepared a wide range of regulatory proposals in October as part of an attempt to make the country the next cryptocurrency hub with the Commonwealth Bank of Australia. (CBA) to enable cryptocurrency trading through its app. bank earlier this month.
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While the country is waiting to see which major traditional finance company is next to accept cryptocurrency, CBA chief Matt Komen said earlier this week that the bank is more excited about FOMO than at risk for digital assets.
“We see risk in participation, but we see a greater risk in non-participation,” he said.