While Australia’s stock exchange may be hesitant over cryptocurrencies, the country’s superannuation fund Rest Super is planning to jump into the crypto game.
This will be the first retirement fund in Australia to undertake the bold move and enter the crypto space amid a bullish run for the assets.
The fund currently controls a net worth of $46.8bn of assets and has been invested in by some 1.8 million members. It’s a compulsory fund that employees are obligated to pay into, similar to the 401K or Individual Retirement Account in the US.
Rest Super has expressed cautious optimism about its decision to enter the space, acknowledging the risks associated with it. Company officials attended a general meeting and expressed their hopes and fears about the decision.
“It’s still a very volatile investment, so any allocation exposure we make to cryptocurrencies is likely to be part of our diversified portfolio as initially a fairly small allocation that may, over time, build”, the company said.
Rest Super though is exercising caution on all levels. The Tuesday meeting was just a heads-up that the fund is exploring the opportunity but has no immediate plans to act on it in the immediate future.
The fund officials confirmed that they are conducting extensive research into different asset classes before they make any decision. The fund is also not going to invest a big portion of its holdings, but enough to start exploring the space and try to generate a return for its members.
A previous report that another investment fund, Queensland Investment Corporation (QIC), was also exploring the option to join crypto space, but the firm shot down those rumors when asked about it by Business Insider.
Australia is trying to be more forwarding thinking about crypto, even though some have criticized the shortsightedness of local authorities and even the stock exchange.