Rest Super, Australia’s first superannuation fund to invest in cryptocurrencies, is stepping up efforts to spur institutional crypto investment in the country.
It manages $46.8 billion in assets and has a client base of nearly 1.8 million members. Superannuation, like 401k, is a must-have for all Australian employees. The sector has a net worth of nearly $2.4 trillion, and this will be the company’s first foray into the crypto market.
The state-owned crypto fund Queensland Investment Corporation [QIC] expanded its exposure to cryptocurrency last month, but the firm later stated that the reports were “incorrectly implied.”
Rest Super’s chief investment officer, Andrew Lill, stated in the general meeting that the company sees cryptocurrency as a “important part” of its portfolio in the future. Given the risk, it would, however, proceed “carefully and cautiously.”
“It’s still a very volatile investment, so any allocation exposure we make to cryptocurrencies will most likely be part of our diversified portfolio as a relatively small allocation that may grow over time.”
Lill recognized the potential of cryptocurrency and blockchain technology to provide a “stable source of value,” so much so that investors were turning to cryptocurrency as a hedge against fiat-based inflation. He continued,
“I believe that in an inflationary environment, it could be a potentially good place to invest.”
Despite the upbeat tone, a spokesperson clarified that the company is “certainly considering cryptocurrencies as a way to diversify our members’ retirement savings [but] will not be investing in the near future.”
The spokesperson continued,
“Before making any decisions, we are conducting extensive research into the asset class.” We are also thinking about the security and regulatory implications of investing in this class.”
Australia has been accelerating its efforts to board the crypto train, and as Rest Super considers including crypto, exposure and adoption will increase.