Australian pension fund Rest Super will become the country’s first retirement fund to invest in cryptocurrency.
The fund manages more than 46.8 billion U.S. dollars worth of assets (AUM) and approximately 1.8 million members. Pensions are equivalent to 401k or individual retirement accounts in the United States and are mandatory for all employees. So far, the $2.4 trillion industry has been extremely cautious about cryptocurrencies.
During the rest of the year Belong toAt the meeting on November 23, the company’s chief investment officer Andrew Lill told members that the company considers digital assets an “important part” of its investment portfolio, but will advance it “cautiously”, stating:
“This is still a very volatile investment, so any distribution exposure we make to cryptocurrencies may be part of our diversified portfolio because the initial distribution is quite small and may build up over time stand up.”
Lill continued to add his view that as investors flock to cryptocurrencies to hedge against fiat currency-based inflation, exposing members to cryptocurrency and blockchain technology can provide a “stable source of value.”
“I do think that in the age of inflation, it may be a potential good place for investment,” he said.
After the CIO’s speech, a spokesperson for Rest clarified in a statement that it “of course is considering cryptocurrency as a way to diversify our members’ retirement savings [but] Will not invest in the near future. “
The spokesperson said: “We are currently conducting extensive research on asset classes before making any decisions.” “We are also considering the security and regulatory aspects of investing in this category.”
These comments are in stark contrast to the comments made by the Australian Super Bank this week. Paul Schroeder, CEO of the $167 billion fund, said on Monday, “We don’t think cryptocurrencies are suitable for our members to invest.”
Last month was Report State-owned investment fund Queensland Investment Corporation (QIC) Is considering getting cryptocurrency exposure.However, the company Tell Business Insider said this week that these reports “falsely imply” and downplay any digital asset adoption moves.
Stuart Simmons, QIC’s currency director, also stated that although he expects cryptocurrency to be adopted by retirement funds in the future, it “may represent a trickle rather than a flood.”
With the development of the Australian cryptocurrency market, the discussion coincides with a potentially bullish period for the Australian cryptocurrency market Broad regulatory advice October by the Senate committee as part of the promotion of national development The next encryption center, Along with the Commonwealth Bank of Australia (CBA) Provide encrypted transactions Through its banking app earlier this month.
Although the country is waiting to see what the next major traditional financial company to adopt crypto will be, CBA CEO Matt Coming said earlier this week that the bank is more FOMO Instead of worrying about the risks associated with digital assets.
“We see the risks of participating, but we see the greater risks of not participating,” he said.