Australian Retirement Giant AMP Breaks Ground with Bitcoin Investment Worth $27 Million

The Australian retirement fund AMP has generated a buzz in the crypto space after recently investing $27 million in Bitcoin. This significant move by the form marks a pivotal shift in the nation’s $4 trillion superannuation industry. Following its recent investment in crypto, AMP becomes the first major superannuation fund to include Bitcoin in its portfolio, despite ongoing concerns about the cryptocurrency’s volatility.

Australian AMP Integrates Bitcoin into Dynamic Asset Allocation Program

As Steve Flegg—senior portfolio manager at AMP—noted in his recent LinkedIn post “Crypto has grown too big, and its potential is too great to ignore any longer.” The investment comes after  months of analysis and strategy refinement by AMP’s investment team.

Stuart Eliot, AMP’s head of portfolio management, explained that Bitcoin exposure is part of the fund’s Dynamic Asset Allocation program, a strategy designed to diversify and adapt to changing market trends. He noted that “the exposure, which represents around 0.05% of the AMP’s  total superannuation assets, reflects structural changes in the industry, including the rise of exchange-traded funds managed by leading global firms.”

Meanwhile, Anna Shelly—AMP’s Chief Investment Officer— also clarified that the investment targets clients with balanced and growth-focused portfolios. She further justified the move by highlighting Bitcoin’s growing momentum and market sentiment. “At $27 million, this represents just a fraction of our $57 billion in assets under management,” Shelly explained.

AMP’s Bitcoin Investment Sparks Industry Debate

Although AMP’s investment highlights the increasing acceptance of Bitcoin as a legitimate asset class, it has also sparked debates. Critics, including Reserve Bank Governor Michele Bullock, argue that Bitcoin lacks stability and doesn’t produce yields, making it an unsuitable choice for retirement funds.

Despite these reservations, AMP’s decision aligns with global trends. Pension funds in the U.S., for instance, have increasingly sought Bitcoin exposure through regulated products like spot Bitcoin ETFs. BlackRock’s iShares Bitcoin Trust ETF, launched earlier this year, has already amassed over $50 billion in assets, signaling surging institutional interest.

AMP’s investment, made when Bitcoin prices ranged between $60,000 and $70,000 earlier this year, reflects a cautious but forward-thinking approach. By allocating a small, risk-controlled portion of its portfolio to Bitcoin, AMP positions itself at the forefront of a potential shift in how retirement funds approach digital assets.

Whether other Australian superannuation funds follow AMP’s lead remains to be seen, but the move could pave the way for broader adoption of Bitcoin in the retirement savings sector.