AMP makes history by becoming the first major Australian-based superannuation fund to invest in Bitcoin (BTC).
Local media outlet Australian Financial Review (AFR) reports today that AMP invested $27 million in Bitcoin as part of its diversification strategy. The investment represents 0.05% of AMP’s total funds worth $57 billion.
It bears mentioning that the company made the investment in May when Bitcoin was trading at around $60,000. However, the price has skyrocketed above the $100,000 mark ever since, netting the superannuation fund a profit of 66.66%.
AMP Execs React, Say Bitcoin Potential Is Too Big to Ignore
Although AMP invested in Bitcoin earlier this year, the move became public knowledge recently following a LinkedIn post from the company’s Senior Portfolio Manager, Steve Flegg.
Notably, Flegg characterized the investment as ‘taking the plunge’ as Bitcoin looked to wrap up an outstanding year. The investment comes as most fund managers in the retirement savings sectors are ignoring Bitcoin due to its volatility.
Explaining the motive behind AMP’s Bitcoin investment, Flegg pointed out that BTC’s potential has become too big to ignore despite the risk associated with the asset.
Anna Shelly, AMP’s Chief Investment Officer, also commented on the bold move, indicating that it is part of the company’s diversification strategy. She pointed out that the investment was also driven by the sentiment and momentum associated with the premier asset.
Furthermore, she acknowledged the risk involved in crypto while pointing out that AMP’s users have benefitted from the investment decision. The CIO suggested that the company is cautious about being too exposed to crypto, as the $27 million allocated to Bitcoin marks its upper-risk limit in the asset class.
Mixed Reactions Trail AMP Bitcoin Investment
Meanwhile, the investment has triggered mixed reactions among financial experts. Some experts, like BTC Markets CEO Caroline Bowler, expressed enthusiasm about AMP’s Bitcoin investment.
However, others, such as Westpac group chief economist Luci Ellis, did not comment directly on the AMP’s investment but criticized Bitcoin for failing to fulfill the functions of money and lacking income-generation potential.
US Companies Embracing Bitcoin
While most Australian companies are still skeptical about Bitcoin, their U.S. counterparts have been embracing the world’s largest cryptocurrency by market cap. These companies are doubling down on the asset following Donald Trump’s re-election.
In particular, MicroStrategy recently scooped another 21,550 Bitcoin worth $2.1 billion, bringing its total holdings to 423,650 BTC.
At press time, Bitcoin trades at $100,877, marking a surge of 2.62% in the past 24 hours.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
