Rest Super, one of Australia’s largest superannuation funds, plans to invest in crypto-currencies. The superannuation fund believes digital assets are a good investment to protect itself from fiat currency inflation.
Rest Super pension fund to invest in cryptocurrencies
At its annual general meeting, Rest Super, a major Australian superannuation fund, announced plans to invest in cryptocurrencies, reports a Business Insider article. Established in 1988, the superannuation fund has 1.7 million members and manages a total of A$66 billion. Andrew Lill, Rest Super’s chief investment officer, recently gave his approval to the investment project.
It’s still a very volatile investment, so any allocation we make to cryptocurrencies is likely to be part of a diversified portfolio and that initially fairly small allocation could, over time, build up. We see this as a very interesting and important part of our portfolio going forward,” says Andrew Lill.
When asked by Business Insider, Lill said there are no immediate plans to invest. However, a medium-term exposure to digital currencies is well within Rest Super’s plans. Before taking action, the pension fund will research the regulatory aspect, which is still unclear to institutional investors.
We are currently conducting extensive research on the asset class before making any decisions. We are also looking at the safety and regulatory aspects of investing in the asset class,” says the manager, who pledges to proceed with “care and caution
$46.8b pension fund in Australia looking to invest in Bitcoin
“We are currently conducting extensive research into the asset class…in an era of inflation, it could be a potentially good place to invest.”
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In justifying his decision to invest in crypto assets, Andrew Lill points to fiat currency inflation. The ambitious stimulus packages put in place in the wake of the Covid-19 crisis have caused inflation to return in most countries. Against this backdrop, cryptocurrencies are emerging as “a stable source of value” for investors, notes Rest Super’s chief investment officer. For JP Morgan, it is in fact the inflation of fiat currencies that has caused the recent rise in the price of Bitcoin.
I think in an era of inflation, this could be a good place to invest,” says Rest Super’s chief investment officer.
Pension funds will turn to cryptocurrencies
With this announcement, Rest Super becomes the first superannuation fund in Australia to invest in digital currencies. Other superannuation funds are expected to follow suit in the coming months. A few weeks ago, Queensland Investment Corporation (QIC), the fifth largest superannuation fund in the country, announced its intention to make small investments in the cryptocurrency sector.
According to Lasanka Perera, chief operating officer of Australian cryptocurrency exchange Independent Reserve, Rest Super’s decision will galvanise interest from other superannuation funds
You’ll soon see much larger companies deploying capital into cryptoassets, using it to generate returns and capital gains. There is huge resistance, but I think it will happen sooner or later
More broadly, Rest Super’s announcement confirms Australia’s growing interest in the cryptoasset sector. In response to demand from Australians, the Commonwealth Bank of Australia (CBA), the country’s largest bank, recently began offering cryptocurrencies to its customers. The move was welcomed by Jane Hume, the nation’s minister for pensions, financial services and the digital economy.
