Pension fund platforms have recently shown interest in crypto-tokens. This is undoubtedly a significant achievement for cryptocurrencies, especially its viability as a long-term investment tool. This is mainly due to the fact that these “conservative” platforms have many rules, regulations and procedures to follow. Therefore, pension funds that are considering investing in cryptography are a big problem.
Pension fund platforms have recently shown interest in crypto-tokens. This is undoubtedly a significant achievement for cryptocurrencies, especially its viability as a long-term investment tool. This is mainly due to the fact that these “conservative” platforms have many rules, regulations and procedures to follow. Therefore, pension funds that are considering investing in cryptography are a big problem.
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Queensland Investment Corporation, Australia’s fifth largest pension fund with nearly $70 billion in assets, is open to investing in cryptocurrencies in the future. Stuart Simmons, QIC’s chief currency officer, told the Financial Times in a report that large pension funds are likely to seek exposure to cryptocurrencies.
As the space matures in terms of regulation and infrastructure, more companies are showing the same interest. However, this takes time. Mainly due to lack of regulatory clarity on cryptocurrencies in Australia.
As previously reported, Australia so far has mixed feelings towards these digital assets. The government has not issued any regulations. However, the sector has experienced a strong increase in demand in the country.
However, it remains a bold move that governs its past as an industry.
“For conservative pension fund managers, a move to the cryptocurrency markets would mark a significant departure from their current additional asset allocation strategies. So far, they've stayed away from the crypto markets, with a few exceptions. "Simmons expects more “super funds” to enter cryptocurrencies as the industry continues to mature.
"I don't think it's inevitable that big funds and the institutional market will invest in cryptography, but because the game is maturing." . . there is a possibility that large funds will seek the ad.In addition, two Virginia-based American pension funds have plunged into the cryptocurrency pool. Meanwhile, CDPQ, Canada’s second-largest pension fund, co-led a $400 million funding round for the Celsius Network cryptocurrency platform.
Also think of other parts of Oceania. New Zealand’s KiwiSaver retirement savings plan, managed by NZ Funds Management, has invested around 5% of its assets in Bitcoin.
Zooming in a bit, the main region in question has seen a significant increase in demand for cryptocurrencies. Exactly why different companies recognized that they also ran these tokens in their finances. For example, a Finder survey of 1,004 Australians in January 2021 found that one in four (25%) invests or plans to invest in cryptocurrencies. That equates to 5 million digital currency investors. About 13% of investors own Bitcoin.
However, it should be noted that conservative players will not feel comfortable investing in this space until the regulations are clarified. Meanwhile, Bitcoin is no longer considered a common asset. Many companies, individuals, companies and even different countries have plunged into this basin. So the scope is very broad and the investments of these big players would certainly bode well for the cryptographic space as a whole.