Stay Great to Invest in Crypto

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Rest is one of the first APRA-regulated funds to publicly express an interest in investing members’ money in cryptocurrencies. Market sources said it was unlikely that any funds were already exposed to crypto. The fund has been approached for further comment.

Founded as the Retail Employees Superannuation Trust in the late 1980s, Rest had $ 65.8 billion under management and 1.81 million members as of June 30, making it one of the largest pension funds of the country in terms of number of customers. Half of its members are under 30 and 60 percent are women.

Bitcoin Baseball Cards

The relatively bullish stance in the crypto markets contrasts with that of the $ 233 billion industry giant AustralianSuper, whose new chief executive, Paul Schroder, has categorically ruled out the deployment of member money to the market.

Paul Schroder at the summit Monday.

“We do not consider cryptocurrency to be investable for our members,” Schroder told the Australian Financial Review Super & Wealth Summit on Monday.

Although the Australian Super Chief expressed interest in decentralized finance and blockchain protocols, cryptocurrencies did not meet the fund’s criteria for an investment asset because they do not generate an income stream. He said AustralianSuper does not hold gold in its portfolios for the same reason.

The comments come as players in the traditional fund management industry are increasingly called upon to take a stand on the legitimacy of crypto assets, which are now worth around $ 2.6 trillion globally.

US giant Vanguard, the world’s second-largest asset manager, has scoffed at cryptocurrencies, describing them as more like collectibles like baseball cards, rather than a serious asset class . Vanguard is preparing to launch an APRA-regulated super fund in Australia next year, competing with former clients in the $ 3 trillion super sector.

Joe Longo, chairman of the Australian Securities and Investments Commission, said at the summit on Monday that he would not be a “cheerleader” for cryptocurrencies, describing the demand for digital tokens from investors retail as “extraordinary”.

“It’s almost an article of faith that no one should invest in something they don’t understand,” Mr. Longo said. “Who among us can say we really understand cryptoassets and cryptocurrencies?”

But Superannuation Minister Jane Hume told the Summit that investing in cryptocurrency is not a fad and that Australia should not be closed to innovation or the potential economic gains associated with it. cryptography.

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