Catenaa, Tuesday, December 17, 2024 – AMP, one of Australia’s largest fund managers, has become the first major fund in the country to invest in Bitcoin, reaping a 66% return on its $27 million purchase earlier this year.
AMP confirmed the Bitcoin buy was made in May when the cryptocurrency was trading around $60,000. With Bitcoin now hovering near $100,000, the fund has seen significant gains.
The company said it holds 0.05% of its $57 billion in total assets in Bitcoin, marking a historic move for the traditionally conservative financial industry in Australia.
This milestone highlights the growing acceptance of digital assets as a legitimate financial instrument.
Other Australian funds have signaled interest in cryptocurrencies, inspired by AMP’s success.
However, analysts note Bitcoin’s dual role as a liquidity booster and a hedge against inflation, despite its inherent volatility.
AMP’s entry into the Bitcoin market aligns with a global trend of corporate adoption, mirroring earlier moves by US firms like MicroStrategy.
The decision underscores Bitcoin’s growing appeal to institutional investors seeking diversification and resilience in volatile markets.
As Bitcoin continues its bullish trend, AMP’s gains may encourage other major funds in the region to explore digital assets, signaling a paradigm shift in how traditional finance interacts with cryptocurrencies.
