Coinbase Has Unusually Big Plans For $600B Australian Pension Funds

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As a seasoned crypto investor with a keen interest in global market trends, I’m excited about Coinbase’s plans to tap into Australia’s growing self-managed pension niche. The potential demand for crypto exposure within this sector is significant, with over $600 billion and counting.

Coinbase Global Inc., a prominent American cryptocurrency exchange, aims to tap into the expanding $600 billion-plus market for self-managed pensions in Australia. To accomplish this, the exchange is developing a new service tailored to cater to this growing demographic in the Land Down Under.

Coinbase to Ride on Aussie Crypto Loophole

John O’Loghlen, Managing Director of Coinbase in the Asia Pacific region, has announced that the development of the digital asset service is underway. A tax office report from Australia reveals that approximately one-fourth of the country’s $2.5 trillion pension fund, amounting to around $664 million or A$1 billion, is invested in digital assets.

The surge in Bitcoin‘s price and increasing investments could help bring these self-managed pension funds holding crypto assets to a significant threshold. At the same time, Australian institutional investors have historically shown reluctance towards crypto assets. Their hesitance can be attributed to past scandals and the inherent risk of volatility within this asset class.

In an interview, a Coinbase executive expressed that self-managed super funds could simply make one investment allocation and then neglect it thereafter.

As a crypto investor, I’m excited to share that we’re developing a unique solution tailored to meet the needs of individual clients effectively. Instead of a one-time transaction, our goal is to build long-term relationships. By choosing to trade with us, you’ll not only gain access to our platform but also become part of an engaging community that values your presence.

As a crypto investor, I’m thrilled to share that the approval of spot Bitcoin ETFs by the SEC in March was a game-changer for the crypto ecosystem. This decision opened up new opportunities for institutional investors to enter the market and drove significant demand for Bitcoin. Consequently, several cryptocurrencies reached new milestones, with Bitcoin reaching an all-time-high (ATH) of over $73,000.

Australia May Launch Spot Crypto ETFs 

Following the U.S.’s lead since its introduction, other regions have expressed similar enthusiasm for launching comparable offerings. Notably, Hong Kong has commenced trading with spot Bitcoin and Ethereum Exchange-Traded Fund (ETF) products.

Australia is anticipated to join the cryptocurrency bandwagon by the end of 2024, with companies such as Van Eck Associates Corp. and BetaShares Holdings Pty already preparing offerings. However, the Asia-Pacific region must grapple with growing concerns over the risks associated with crypto usage and investment.

Michael Houlihan, the head of a private wealth management firm, has issued a warning to investors about investing heavily in crypto, which is known for its risky nature. Despite this advice, several companies, including Wells Fargo, have continued to increase their holdings in this asset class.

 

 

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2024-05-15 23:10