AMP, an Australian superannuation fund, announced a $27 million investment in Bitcoin. It is the first major fund of its kind in Australia to adopt the digital asset. The latest acquisition represents a significant step in integrating crypto into institutional investment portfolios.
According to a Financial Review report, the fund manages approximately $57 billion in assets. Its Bitcoin allocation is modest, representing just 0.05% of its total assets under management (AUM).
AMP’s decision to invest in the crypto asset is a strategic move to diversify its portfolio during economic uncertainty. The investment is intended to act as a hedge against inflation while expanding beyond conventional assets like stocks and bonds.
The superannuation fund reportedly purchased bitcoin at prices between $60,000 and $70,000, aiming to diversify its holdings and benefit from BTC’s historical price surge, which followed Donald Trump’s electoral victory on November 5.
Despite BTC price surging past the $100,000 level, other Australian superannuation funds remain hesitant to follow AMP’s example, considering the emerging asset too risky for adoption.
BTC Adoption & Investments
Australia is not alone in this acquisition. On July 27, 2024, the state of Michigan’s pension fund announced it had invested $6.6 million into its crypto investment vehicle through ARK 21Shares’ Bitcoin exchange-traded fund (ETF). The decision underscored the increasing global interest in Bitcoin and its investment vehicles.
Following Michigan’s investment, Jimmy Patronis, Florida’s Chief Financial Officer (CFO), pushed for BTC to be included in the state’s investment portfolio. If implemented by the State Board of Administration (SBA), Florida will join many American states like Wisconsin, which has added crypto assets to its holdings.
In light of BTC purchases, top corporations like MicroStrategy and Tesla have positioned themselves among the largest bitcoin holders. On December 5, 2024, the business intelligence firm exceeded $40 billion in value. MicroStrategy holds roughly 402,100 BTC, purchased at an average of $58,402, and is collectively worth $41.33 billion.
On December 9, the publicly traded company purchased 21,550 BTC for approximately $2.1 billion. The acquisition, executed at an average price of $95,976, brings its total Bitcoin holdings to 423,650 BTC, valued at around $42 billion. With this big buy, the company boasts over 2% of the Bitcoin supply.
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