Australia’s Rest Superannuation Fund will invest in cryptocurrency for its 1.8 million members

“Because it is still a very volatile investment, any allocation to cryptocurrency would almost certainly be part of our diversified portfolio,” Rest Super’s CIO Andrew Lill said on Tuesday.

Rest Super, an Australian superannuation company, is expected to become the country’s first retirement fund to invest in cryptocurrency.

The fund manages more than $46.8 billion in assets and has around 1.8 million members. In the United States, superannuation is the equivalent of a 401k or Individual Retirement Account, and it is mandatory for all workers. Until recently, the $2.4 trillion industry has been averse to cryptocurrencies.

Rest Super’s chief investment officer Andrew Lill informed members at the firm’s annual general meeting on Nov. 23 that the business views digital assets as a “essential aspect” of its portfolio going ahead but would move “carefully and cautiously,” stressing that:

“Because it remains a very volatile investment, any allocation to cryptocurrencies will almost certainly be part of our diversified portfolio, first as a tiny commitment that may grow over time.”

Lill continued by stating that exposing members to cryptocurrency and blockchain technology might give a “reliable source of wealth” at a period when investors rush to crypto as a hedge against fiat-based inflation. “I believe that in an inflationary environment, it may be a potentially advantageous area to invest,” he remarked.

Following the CIO’s remarks, a Rest spokeswoman explained in a statement that the company is “definitely exploring cryptocurrencies as a strategy to diversify our members’ retirement funds,” but “will not invest in the near future.”

“Before making any judgments, we are undertaking significant study on the asset class,” the representative said. “We are also taking into account the security and regulatory risks associated with investing in this class.”

The statements contrast with those made this week by Australian Super, with Paul Schroder, the fund’s chief executive, remarking on Monday that “we do not believe bitcoin is investible for our members.”

Last month, it was revealed that Queensland Investment Corporation (QIC), a state-owned investment vehicle, was considering expanding its crypto holdings. However, the corporation said this week to Business Insider that the claims were “incorrectly suggested.” “and downplayed any initiatives toward digital asset usage.

Stuart Simmons, QIC’s head of currency, also said that although he expects superannuation funds to embrace cryptocurrency in the future, it would “most likely be a trickle, rather than a flood.”

The discussion comes at a potentially bullish time for the Australian crypto market, following the development of extensive regulatory proposals by a Senate committee in October as part of a push to develop the country into the next crypto hub, as well as the Commonwealth Bank of Australia’s (CBA) announcement earlier this month that it will offer crypto trading via its banking app.

While the nation waits to see which big conventional financial institution would be the next to embrace crypto, CBA CEO Matt Comyn revealed earlier this week that the bank was driven more by FOMO than by concerns about the dangers involved with digital assets. “We find dangers associated with participation, but we see greater risks associated with non-participation,” he said.

Also Read: In A New Statement, The IMF Warns El Salvador About The Risks Associated With Bitcoin.