As a seasoned investor with a penchant for staying ahead of the curve, this latest move by AMP to invest $27 million in Bitcoin has piqued my interest and validated my decision to dabble in cryptocurrencies years ago. The volatility that once deterred big players like pension funds is now being seen as an opportunity for growth, a testament to the maturing of this market.
Australia’s pension fund AMP has made history by investing $27 million in Bitcoin, making it the first significant superannuation fund to venture into cryptocurrency. This asset class that was once deemed too volatile for large investment managers is now creating a sense of urgency or “Fear Of Missing Out” (FOMO), as the value of Bitcoin has surpassed $100,000 following Donald Trump’s victory in the U.S. presidential election.
Pension Giant AMP Invests $27 Million in Bitcoin
On December 12th, as stated by the Australian Financial Review, AMP, a retirement savings fund worth approximately $57 billion, marked a significant milestone by becoming the first major pension fund in Australia to purchase Bitcoin. This makes them the pioneers within the $4 trillion retirement savings industry when it comes to investing in the crypto asset class.
Other large pension funds have stated that they will not imitate AMP’s move towards investing in the cryptocurrency market. Previously, Reserve Bank Governor Michele Bullock had expressed skepticism about the idea of investing in crypto assets, arguing that they are not suitable for retirement investment portfolios.
In May, the chief investment officer at AMP, Anna Shelley, revealed that they had invested approximately 0.05% or $27 million of their total $57 billion in managed funds into Bitcoin. During this time, the value of Bitcoin was fluctuating between $60,000 and $70,000. This investment was made as part of a broader diversification strategy, following the recommendation of AMP’s dynamic asset allocation process, which found Bitcoin to be a viable option due to its “strong momentum and positive sentiment.
Bitcoin Rally to $100K Driving Mainstream Adoption
According to Matthew Sigel, who leads digital assets research at VanEck, individuals investing in AMP’s balanced and growth portfolios are the ones most prone to having Bitcoin exposure at the client level.
Worldwide pension funds are increasingly considering Bitcoin investments, particularly following the U.S. Securities and Exchange Commission’s approval of a Bitcoin exchange-traded fund (ETF) earlier this year. Most recently, the UK’s prominent pension fund, Cartwright, has entered the fray and allocated approximately 3% of its holdings directly towards Bitcoin investment.
Investment firms like hedge funds are actively purchasing Bitcoin, while pension funds are considering Bitcoin investments following discussions with their clients. Yet, these pension fund investments are being held back due to the lengthy review and verification process they must undergo.
As a researcher, I’m reporting that the current trading price of Bitcoin (BTC) stands at approximately $100,837. Over the past month, it has experienced a notable surge of nearly 20%. The recent high of $104K was reached during the Trump era and the shift towards a more crypto-friendly administration in the United States.
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2024-12-12 17:22