Australia remains outstanding with its increased swing and adoption of cryptocurrencies by the populace. Despite its volatility, the popularity of digital assets has triggered more investment moves towards this financial asset.
Joining in the train of crypto investment within the country is the Retail Employees Superannuation Trust (Rest Super). By its indication to invest superannuation fund in cryptocurrency, the Australia Rest Super will be the first of its type to do so. Before now, the entire retirement fund sector has been careful with cryptocurrency.
With about 1.8M members, Rest Super fund’s assets under management (AUM) are worth $46.8 billion. However, superannuation is mandatory for all Australian employees. It has an equivalence of a U.S. Individual Retirement Account or 401k.
Speaking on Tuesday during the annual general meeting of Super Rest Fund, Andrew Lill, the company’s Chief Investment Officer (CIO), acknowledged the volatility of such crypto investments. However, he said that their allocation to the investment is a part of diversifying their portfolio.
The CIO mentioned that the company considers cryptocurrencies an important investment aspect and will exercise caution in its move. However, he stated that his opinion is that the investment introduces members to digital assets and blockchain technology.
Hence, they could access a stable source of value within a period where people stick more to crypto investment to combat fiat currency inflation.
Furthermore, another statement from a Rest spokesperson explained that the firm considers cryptocurrencies as a diversifying means of its members’ retirement fund. But, the plan may not be a direct investment.
In addition, the spokesperson confirmed that the company is still doing its research before its final decisions. Also, they are focusing on both the regulations and security involved in crypto investment.
Investment In Cryptocurrencies To Strive In The Country
Contrasting comments are coming within the week to the ones from the Australian Rest Super. On Monday, Paul Schroder, the Chief executive of the $167 billion funds, stated that crypto is not an investment option for their members.
Reports from last month revealed that Queensland Investment Corporation (QIC), an investment fund owned by the state, is considering embracing cryptocurrency. But, contrary to that, the company, this week, disclosed to Business Insider the implication of the reports. Hence, it piped down all moves towards digital assets.
The Head of Currency at QIC, Stuart Simmons, said he wants superannuation funds to embrace cryptocurrency. However, the move is likely to be a gradual trickling instead of a massive flow.
The entire deliberation on Australian superannuation funds is happening within the period of a bullish trend in the country’s crypto market. This is after the Senate committee brought up some regulatory proposals within October.
It catalyzes pushing the country as a focal point in crypto transactions. Also, the Commonwealth Bank of Australia (CBA) intends to offer cryptocurrency trading earlier in the month through its banking app.
As more cryptocurrency adoption is expected in the country, Matt Comyn, the CEO of CBA, commented on the bank action this week. The CEO explained that participation in digital assets is motivated by FOMO. He said that though there are risks to their involvement, there will be more significant risks with their non-participation.