AMP crypto play backed by Aussie exchange

AMP’s unprecedented yet “modest” plunge into cryptocurrency investing has received the backing of a leading Australian crypto exchange

AMP super funds to integrate Bitcoin investments in Dynamic Asset Allocation program

After revealing the first-ever cryptocurrency investments by a major Australian super fund, AMP has announced that the Bitcoin exposure will form part of its Dynamic Asset Allocation program.

The program provides greater flexibility to adjust the asset class mix in response to market conditions, enabling AMP to optimise returns for members.

“We’re excited to see that AMP is integrating Bitcoin into its Dynamic Asset Allocation program, which allows them to adjust the asset class mix to suit market conditions,” said Caroline Bowler, chief executive of BTC Markets.

“This shows a forward-thinking mindset that aligns perfectly with the transformative changes we’ve seen in the financial industry this year.”

The announcement by AMP senior portfolio manager Steve Flegg on Thursday revealed that AMP super portfolios will now include a “modest” allocation to Bitcoin, limited to 0.05%.

This marks a significant development in the Australian superannuation sector, which has largely remained on the sidelines of the cryptocurrency market.

The move comes amid a backdrop of rising cryptocurrency prices, with Bitcoin showing a 17.1% increase over the last month and a gain of 54.7% over the last six months, reaching $AU157,121 per coin (as at 13 December 2024).

However, investors have also witnessed dramatic price dips since Bitcoin's first minting in 2009. Among the most recent slides include a 25% loss in November 2022, following the collapse of global crypto exchange FTX.

Additionally, between April and May 2021 the coin lost 53% of its value, with $1 trillion being wiped off the global crypto market in a single week.

Despite these fluctuations, Bowler believes that the emerging asset class offers substantial potential over the long term.

“What’s often overlooked is Bitcoin’s role in the digital asset industry and its potential for significant long-term growth,” she said.

“The digital asset class is still in its infancy, much like the internet was in the ’90s. Those who didn’t see the value in tech stocks back then missed out on a revolution.”

According to Bowler, the clear interest shown by Australians in crypto suggests a market “ripe for exploration”.

“It’s not just about chasing gains; it’s about recognising a new asset class that’s here to stay and understanding how it fits into a broader, diversified portfolio,” she said.