Despite the volatility of Bitcoin causing major Global Fund management companies to steer clear, Australian Retirement and wealth management company AMP has become one of the first large pension management companies in the country to invest in Cryptos, allocating about 27 million Australian Dollars (17.2 million USD) to Bitcoin Futures.

Steve Flegg, Senior Portfolio Manager at AMP, stated in a post on LinkedIn this week that the Fund "ventured and moderately allocated to Bitcoin" earlier this year. An AMP spokesperson mentioned that the Fund has invested in Bitcoin Futures and added that there are no plans for increased Shareholding.

Bitcoin surpassed 0.1 million USD for the first time last week and has risen over 40% since Trump won the USA presidential election in November. Trump has openly supported Cryptos and promised to create a supportive environment for digital asset companies in the USA.

So far, Australia's 4.1 trillion Australian Dollar pension system has shown little enthusiasm for investing in Cryptos. The Governor of the Reserve Bank of Australia, Michele Bullock, recently stated that Bitcoin has no role in the Australian economy, while regulators have previously warned of the need for "robust risk management controls" when engaging in activities involving digital assets.

Australia's rapidly growing Retirement Industry has been under close scrutiny for a range of issues, including valuations in the unlisted market, customer service, and investment fees. The Industry undergoes a performance test each year aimed at eliminating underperforming pension investment products. Earlier this year, dozens of pension investment products offered by AMP failed to pass the test, with most products failing for the second consecutive year.

AMP's Chief Investment Officer, Anna Shelley, stated in an email comment that the investment in Bitcoin Futures reflects the "structural changes" in the digital asset industry over the past year, including leading investment managers launching ETFs directly investing in Bitcoin and Ether.

“After testing and careful consideration by our investment team and committee, we incorporated a small and risk-controlled position in digital assets through our dynamic asset allocation program in May,” she said, adding that this exposure represents about 0.05% of its total pension Assets.

Australia's Prudential Regulation Authority declined to comment on AMP's investments in Bitcoin Futures, instead referencing a letter it sent to the financial industry in 2022.

Shelley stated, "While our super members benefit from this risk exposure, we fully understand the risks and volatility characteristics of this emerging asset class and will continue to manage our Shareholding cautiously, which is a small part of a highly diversified asset portfolio."