Queensland Investment Corporation (QIC), Australia’s fifth-largest manager of pension funds with A$92.4 Billion ($69bn) in assets under management (AUM), has revealed that it might explore such investments in future.
Stuart Simmons, QIC’s chief of currencies, spoke to the Financial Times today.
Australian Superpowers Fear Regulatory Uncertainty
Due to the rapid growth of crypto markets in recent years, many institutional and family offices have taken advantage of this asset class by taking early positions.
But, Australia’s super funds, which manage retirement savings for millions of Australians, have been skeptical of cryptocurrency investments.
Simmons pointed out that the supers are skeptical about crypto assets because they don’t know how governments will respond to the industry’s rapid growth.
Simmons stated that “Right now there’s a lot of uncertainties and the operational infrastructure to institutional investing remains immature.”
Protecting Investors to Drive Investments
The head of currencies at QIC, the QIC, would need regulatory certainty regarding their protection against asset theft and market manipulation before large investors would consider investing in cryptocurrency.
Simmons stated that this protection is guaranteed: “I don’t believe there’s an inevitability regarding super funds or the institutional market investing crypto. But as the segment matures, I do not think so. . . Super funds may seek exposure.
North American Pension Managers Get More Confident
Although many conservative pension fund managers are avoiding cryptocurrency investments, very few, particularly in North America have made the decision to invest in it.
Two pension funds in the United States, Fairfax County Police Officers Retirement System (Fairfax County Employees Retirement System) and Fairfax County Police Officers Retirement System made direct bets on the asset class through their investment in Parataxis Capital Management.
Caisse de depot-et placement du Québec (CDPQ), Canada’s second largest pension fund, participated in the $400 million round of funding for the popular cryptocurrency lending company Celsius Network.
Because of the regulatory risks associated with cryptocurrency investment, European pension fund managers are not enthusiastic about it.
Simmons stated that conservative investors will feel more comfortable investing once the crypto market moves from being a “Wild West” market.
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