This Australian pension fund plans to invest in cryptocurrencies

Major Australian pension fund turns to cryptocurrency

Queensland Investment Corporation (QIC), Australia’s fifth largest pension fund, is exploring the idea of ​​making “small investments” in the cryptocurrency industry, the Financial Times reports on October 15, 2021. Owned by the Queensland government , a leading Australian state, the company manages US $ 69 billion.

“I don’t think there is an inevitable adoption of investment funds from the institutional market into cryptocurrency, but as the segment matures … the deeper funds are likely to seek exposure,” Stuart Simmons believes. , Head of Foreign Exchange at QIC.

The pension fund will start with timid investments in the digital currency sector. According to Stuart Simmons, the managers of the pension fund above all want to be cautious. They fear that financial regulators and governments will intervene to regulate cryptocurrencies.

While many countries are openly in favor of cryptocurrencies, such as El Salvador, Ukraine or Venezuela, several nations regularly issue threats against digital currencies. This is particularly the case of China and India.

“At present, there are a number of uncertainties, and the operational infrastructure for institutional investment remains immature,” tempers the framework.

👉 Read also: The British regulator ensures that “investors risk losing everything because of cryptocurrencies”

Pension funds and cryptocurrencies: a gradual shift

Despite the explosion in the cryptocurrency market, most pension funds are still reluctant to publicly turn to digital assets such as Bitcoin (BTC). For Stuart Simmons, the majority of large investors want more regulatory certainty and more protections around “non-quantifiable risks” such as fraud, theft and price manipulation.

“While the framework (Editor’s note: regulatory) continues to develop, deep-sea funds could potentially meet user demand by facilitating investment in cryptocurrencies,” prophesies Stuart Simmons.

However, several major funds have already taken the plunge. In New Zealand, the KiwiSaver pension fund invested $ 60 million in Bitcoin (BTC) last March. More recently, the Fairfax County fund in Virginia (United States) bought $ 50 million worth of cryptocurrency through Parataxis, a specialized hedge fund.

Gradually, institutions are turning to cryptocurrencies. According to a survey carried out by the Fidelity Digital Assets agency among 1,100 investors, the “vast majority” of institutional investors will own cryptocurrencies by 2026. For his part, JP Morgan even assures us that institutions are now abandoning gold in profit of Bitcoin (BTC).

👉 On the same topic – A regulated Bitcoin (BTC) fund has been launched in Malaysia for institutional investors

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About the author: Florian Bayard

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