Pension fund platforms have recently shown their interest in crypto-tokens. This is certainly a significant achievement for cryptocurrencies, especially its viability as a long-term investment tool. This is mainly due to the fact that these “conservative” platforms have many rules, regulations and procedures that they need to follow. Hence, pension funds thinking about investing in crypto are big business.
Australian pension fund considers crypto investment https://t.co/oAJpedgwcO 🇧🇷 opinion
- Financial Times (@FT) October 14, 2021
Queensland Investment Corporation, Australia's fifth-largest pension fund managing nearly $70 billion in assets, is reportedly open to future cryptocurrency investments. Stuart Simmons, QIC's head of currency, told the Financial Times in a report that large pension funds are likely to seek exposure to crypto.
As the space matures in terms of regulation and infrastructure, more companies would show the same interest. However, this takes time. Mainly due to lack of regulatory clarity on cryptocurrencies in Australia.
As discussed earlier, Australia has had a mixed feeling towards these digital assets so far. The government has not established any regulations. However, the industry has seen a huge increase in demand in the country.
However, this is still a bold move that governs its past as an industry.
“For conservative pension fund managers, a move to cryptocurrency markets would mark a major departure from their additional common asset allocation strategies. So far, they've stayed away from the cryptocurrency markets, with only a few exceptions. ”
Simmons expects more 'super funds' to dip their fingers into cryptocurrencies as the industry continues to mature.
“I don't think it's inevitable that big funds and the institutional market will invest in crypto, however as a result of the part's maturation… there is a chance that big funds will seek publicity. ”
In addition, two Virginia-based American pension funds have plunged into the crypto pool. Meanwhile, CDPQ – Canada's second largest pension fund, co-led a $400 million round of funding for the Celsius Network cryptocurrency platform.
Also consider other regions of Oceania. New Zealand-based retirement savings scheme KiwiSaver, operated by NZ Funds Management, has invested around five percent of its assets in Bitcoin.
Zooming out a bit, the main region in question has witnessed a significant increase in demand for crypto. Exactly why different companies recognized and executed these tokens well in their finances. For example, a Finder survey of 1.004 Australians conducted in January 2021 revealed that 1 in 4 people (25%) invest or plan to invest in cryptocurrency. This equates to 5 million digital currency investors. About 13% of investors own Bitcoin.
However, it should be noted that conservative players will feel comfortable investing in this space only after regulatory clarity. Meanwhile, Bitcoin is no longer considered just a common asset. Many different firms, individuals, companies and even countries have plunged into this pool. Consequently, the scope is very wide and the investments made by such important players would certainly bode well for the cryptographic space as a whole.
