Australian Pension Fund with $69B in AUM Eyes Crypto Investment

Australian Pension Fund with $69B in AUM Eyes Crypto Investment

As global interest in cryptocurrencies continues to gain momentum, Queensland Investment Corporation (QIC), Australia's fifth largest pension fund manager with A$92.4 billion (69 billion in the future.

Stuart Simmons, QIC's currency chief, told the Financial Times in a statement interview today.

Regulatory uncertainty spooks Australian 'super'

Due to the massive growth in the crypto market recently, several institutional and family offices had taken early positions by investing in the asset class.

However, Australia's so-called super funds, which manage the retirement savings of millions of people, have been skeptical about investing in cryptocurrencies.

Simmons noted that this skepticism about crypto assets from supers is due to uncertainty about how governments worldwide will intervene in the fast-growing industry.

“There are a number of uncertainties at the moment and the operational infrastructure for institutional investments is still immature,” said Simmons.

Investor protection to promote investments

For the QIC's currency chief, before most large investors would invest in cryptocurrencies, they would need regulatory certainty regarding their protection from asset theft and market manipulation.

With this protection guaranteed, Simmons said: "I don't think super funds and the institutional market investing in crypto is inevitable, but as the segment matures... there is a likelihood that super funds will look for exposure."

North American pension managers are loosening up

While several conservative pension fund managers have chosen to steer clear of cryptocurrency investments, few, particularly in North America, have taken exposure to the asset class.

In the United States, two pension funds - the Fairfax County Police Officers Retirement System and the Fairfax County Employees' Retirement System - have made direct bets on the asset class through their stake in Parataxis Capital Management.

Likewise, Caisse de dépôt et placement du Québec (CDPQ), Canada's second largest pension fund, was among the key investors participating in the recently concluded $400 million funding round for the popular cryptocurrency lending company Celsius Network.

However, European pension fund managers do not seem to be enthusiastic about cryptocurrency assets yet due to the regulatory risks associated with the investment.

Simmons reiterated that conservative investors will feel comfortable once the crypto ecosystem evolves from its current “Wild West market” to a more organized one.

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