Australia’s Rest Super Pension Fund will be the first pension fund in the country to invest in cryptocurrency.
The foundation manages over $ 46.8 billion and has nearly 1.8 million members. Pension is equivalent to a 401k or IRA in the United States and is mandatory for all employees. So far, the $ 2.4 trillion sector has been very wary of cryptocurrencies.
During Rest Super’s annual general meeting on Tuesday, the company’s chief investment officer, Andrew Leal, told attendees that the company sees digital assets as “an important part” of its portfolio in the future, but will proceed with “caution and caution,” noting that:
“This is still a very volatile investment, so it is possible that all of our cryptocurrency offerings are likely to be part of our diversified portfolio, which is basically a fairly small distribution that can grow over time.”
Lyell continued his view that member access to cryptocurrency technology and blockchain could provide a “sustainable source of value” in the midst of a time when investors flock to cryptocurrencies as a hedge against cash-based inflation.
“I think this could be a good place to invest in an era of inflation,” he said.
After the CIO’s speech, a spokesperson for the rest of the members confirmed in a statement that he “certainly views cryptocurrency as a way to diversify members’ retirement savings [but] will not invest in the near future.”
“We are currently conducting extensive asset class investigations before making any decisions,” a company spokesman said. “We are also looking into safety and regulatory aspects when investing in this category.”
The comments contrast with those of the Super Australian this week, where the CEO of the $ 167 billion fund, Paul Schroeder, said on Monday that “we do not see cryptocurrency as an investment opportunity for our members.”
It was reported last month that the government-owned Queensland Investment Corporation (QIC) is looking for opportunities to use cryptocurrency. However, Business Insider said this week that the reports were “misinterpreted” and softened all measures related to digital asset adoption.
Stuart Simmons, head of foreign exchange at QIC, said while he expects pension funds to use cryptocurrency in the future, “it will likely represent a service charge, not a flood.”
The discussion comes at a potentially favorable time for the Australian crypto market after a Senate committee drafted sweeping regulatory proposals in October as part of pressure to transform the country into the next cryptocurrency hub alongside the Commonwealth Bank of Australia (CBA). offer cryptocurrency trading. Through his banking app earlier this month.