Coinbase, a well-known cryptocurrency exchange in the United States, is gearing up to join the $2.5 trillion pension market in Australia.
Australian self-managed superannuation funds are the target market for a new service that Coinbase is creating. This is covered by Bloomberg.
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Coinbase is aiming to capture a sizable portion of the market
Rather than having outside experts oversee their pension funds, account holders in a self-managed fund do it themselves. The most recent figures from the Australian Taxation Office show that they constitute approximately 25% of the $2.5 trillion pension system in Australia.
One billion Australian dollars, or $664 million, has already been set aside by self-managed pension funds to be invested in cryptocurrency. Obviously, the American cryptocurrency exchange would be foolish to pass up such a substantial portion of the market.
Keep reading: Australians could soon be able to buy Bitcoin ETFs on the spot
The managing director for Asia Pacific at Coinbase, John O’Loghlen, has revealed that the exchange is working on a service tailored to self-managed retirement accounts.
“Our focus is on developing a solution that can meet the unique needs of these customers on an as-needed basis, ensuring their continued business with us,” he emphasized.
Private equity firms and other large investors are wary of cryptocurrency. The digital asset market’s troubled history is largely to blame. Nevertheless, self-managed pension funds’ cryptocurrency holdings might hit a new high this year.
The total value of Bitcoin (BTCUSD) has grown by 55% since the start of the year. Along with the positive dynamics came the first ever US-based exchange-traded funds (ETFs), which were centered around the first cryptocurrency by market capitalization and anticipated a halving. These factors contributed to Bitcoin’s March record high, which was above $70,000. Many believe that Bitcoin’s value will keep rising this year.
Pension funds are considering putting money into cryptocurrency.
It’s part of a larger trend that Coinbase is trying to build a service for Australian self-managed superannuation funds. Investing in Bitcoin and other cryptocurrencies is becoming increasingly attractive to many similar structures.
Be sure to check out: 3 Important Bitcoin ETF Market Trends to Keep an Eye On
The news broke in March that the biggest pension fund in the world, Japan’s GPIF, had announced new policies. As it turned out, GPIF is thinking about putting money into cryptocurrency. The market capitalization leader in cryptocurrency was among the assets considered for possible investment.
Pension funds in the US are paying more and more attention to spot Bitcoin ETFs, as previously mentioned by Manuel Nordeste, VP of digital assets at Fidelity. He claims that Fidelity has dealt with these clients financially and in negotiations on multiple occasions.