Australia’s fifth-largest pension fund weighs bitcoin investments

Queensland Investment Corporation (QIC), which manages retirement savings totaling A$92.4 billion ($69 billion), is weighing a plan for small investments in cryptocurrencies, according to the Financial Times.

Stuart Simmons, head of QIC’s currency team, called the first proposed tranche into digital assets “more of a trickle than a flood.”

Barriers include regulatory uncertainty and infrastructure that is still not ready for institutional investment, he added.

The executive also noted the need for greater protection against risks that are hard to quantify, such as fraud, theft and market manipulation.

“I doubt that big players are seriously considering such investments. There is a chance that, as the segment matures, their view will change,” Simmons said.

A QIC spokesperson stressed that the entry of banks and financial institutions into the crypto market speaks to its prospects. He did not rule out that pension funds might eventually be persuaded to follow under pressure from clients.

In March, NZ Funds Management invested 5% of the $350 million under its management in bitcoin.

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