Industry News

Pension fund manager hints at investing in crypto

TL;DR Breakdown

  • Australian pension fund manager hint at making crypto investments.
  • QIC not first pension firm to invest in crypto.
  • Regulatory uncertainty, QIC’s fear about its potential crypto investment.

Queensland Investment Corporation (QIC), a top-tier pension fund manager in Australia, has said that it may begin investing in cryptocurrencies.

The pension fund manager said to be Australia’s fifth-largest pension funds manager with nearly $70 billion worth of assets, said its crypto investment would primarily be to diversify its exposures.

QIC’s currency director, Stuart Simmons, confirmed to Financial Times that the firm would invest in digital assets.

“Right now, there are a number of uncertainties, and the operational infrastructure for institutional investing remains immature,” said Simmons. “As the framework continues to develop, super funds may eventually simply be responding to user demand by facilitating investment in crypto.”

He also said the firm would only invest little of its resources in crypto but did not reveal which coin the pension fund managers would stake on.

Beyond QIC, other pension fund managers invest in crypto

The Australian pension firm would not mark as the first crypto platform to invest in cryptocurrencies.

While several conservative pension fund managers have chosen to stay away from cryptocurrency investments, few, especially in North America, have gone ahead to gain exposure to the asset class.

Earlier this week, Canada’s second-largest pension fund, CDPQ, also bought into the crypto space. It co-led a $400 million funding round for crypto lending platform Celsius Network.

Before the Canada firm, two U.S. pension funds, the Fairfax County Police Officers Retirement System and the Fairfax County Employees’ Retirement System were reportedly investing in crypto, pending board approvals. They were planning to make a combined $50 million investment in Parataxis Capital Management’s main fund, which buys various cryptocurrencies and trades crypto derivatives.

QIC’s fear with crypto investment

The pension manager executive revealed that the firm’s skepticism about crypto assets is a result of uncertainty about how governments globally will intervene in the rapidly growing industry.

“Right now, there are a number of uncertainties, and the operational infrastructure for institutional investing remains immature,” Simmons said.

This post was last modified on October 17, 2021 1:47 pm

Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

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