In a surprising turn of events, on December 12th, Australian superfund AMP has made an impressive investment in the crypto space. According to local media AFR, AMP has invested $27 million in Bitcoin, becoming the first significant superannuation fund to invest in the OG-cryptocurrency.
The move comes as Australian authorities have taken a strict and vigilant stance on the crypto sector. Additionally, most banking services have kept a safe distance from crypto investments, while being moderately on board with acceptance.
AMP’s Investment in Bitcoin Comes As First For a Superfund
According to AFR, Bitcoin investment by superfunds has been historically avoided by large fund managers in the $4 trillion retirement savings sector because of its volatility.
This makes AMP’s move the first in the sector and also a new milestone for the crypto sector in the region.
The Reserve Bank governor, Michele Bullock, has previously stated that cryptocurrencies have “no place in the Australian economy and should not be included in retirement portfolios due to their lack of yield,” per AFR.
Being contrary to AMP’s move, other large funds in the nation announced that they would not be following AMP’s lead into this space.
AMP’s Move Comes As Australia Stays Poised For Crypto Market Growth
AMP’s move comes at a time when the crypto space in Australia will likely see a ascending trend given the rise in user adoption. As per data, it is expected that the Australian cryptocurrency market will generate A$799.3 million by revenue by 2024.
According to estimates, the cryptocurrency market will generate AU US$70.6 on average per user in 2024. Additionally, market data suggests that there will be 11.38 million users of cryptocurrencies in Australia by 2025.
According to projections, the user penetration rate will rise from 42.40% in 2024 to 42.22% in 2025. The rise in blockchain startups and cryptocurrency exchanges in Australia is indicative of the nation’s growing interest in cryptocurrencies.
AMP’s Move Stays Opposite Of Australian Regulatory Framework
Australian regulators have been taking a rather strict stance on the crypto nation given that Australia has seen a rise in illicit activities related to crypto in the past years.
However, the rise in illegal activities has not stopped the nation to be more proactive in terms of crypto adoption and growing userbase.
Just previously, to address the misuse of cryptocurrency ATMs and improve adherence to anti-money laundering regulations, AUSTRAC, Australia’s financial crime watchdog, had established a cryptocurrency task force.
The initiative represents a more stringent approach to Australian cryptocurrency regulation. This action is in line with global patterns as authorities around the world struggle with the dangers posed by cryptocurrencies.
Australia’s proactive approach to crypto regulation demonstrates its dedication to upholding a safe financial system while welcoming technological advancement.