TL;DR Breakdown
- Rest Super might be the first Australian Fund to join the crypto space.
- The disclosure makes Rest the first notable super Fund to show advances in the crypto space.
- The amount Rest Super intends to invest remains unclear to the public.
Rest super is the first Australian pension scheme to show genuine interest in exposing its members to cryptos. Rest Super’s move might be the missing link in triggering institutional investments in virtual assets in Australia.
During the latest AGM, the firm’s chief investment officer Andrew Lill raised the issue. He cleared crypto as a worthy investment. Besides, he informed members of plans to invest a share of their money in virtual assets.
Andrew made it clear that investment is volatile. So, the allocation made towards the crypto investment will be a diversified investment. One thing he notified the meeting on is the ability of a virtual asset to grow with time. Thus, Andrew feels that the crypto venture is an essential aspect of their portfolio.
But, the quantity to invest, how to invest, and when to invest remains unclear. The media is waiting for Rest Super for comments.
Institutional investments in cryptocurrency are taking shape bit by bit
Rest Super’s intent to expose its member to cryptocurrency was not a surprising move. The market was ripe, and the news was bound to come. Yet, other significant schemes have come together to oppose the senate’s proposal. Earlier, the senate proposed a rollout of licensing tenure for such investments. Rest Super developed an interest in digital coins after several hesitations.
Recently there were rumors of (QIC) Queensland Investment Corporation’s plans to invest in crypto. The scheme later played down the talks. Yet, the organization said that people wrongly implied the information. They aren’t planning to invest in crypto on behalf of members.
In a similar incident, Aussie’s Super took the same stand. They ruled out any investment in virtual assets, despite the time.
Yet, exchange platforms suggest that institutional investments are upcoming. The next vital factor to mainstream crypto in Aussie land will be institutional investments. Lasanka Perera said that several fund managers have personal exposure to cryptos. So, they are waiting for the market to tip. He added that after a successful investment by any scheme in crypto, flood gates would open. Yet, much resistance exists from crucial investors at the moment.
It’s been a big month for crypto in Australia. Regulators, policymakers, and even the banks have warmed to the asset class. This follows years of dismissing the market as nothing but speculative fodder.
Senate report on proposed government baked licensing regime
Recently, the Senate panel gave a report on the proposed state-backed licensing regime for cryptos. The regulations were imitations from Singaporean regulators.
If the report is adopted, Perera believes it will catalyze institutional investments in Australia. Also, it could raise exposure much faster than anticipated. Moreover, if they introduce bitcoin ETF, it might catalyze things more, which could happen sooner.
