- vortextimes.com
- May 15, 2024
- 10:52 pm
- No Comments
Coinbase Expands into Australia’s Pension Fund Market Amid Crypto Surge :
To capitalise on the rapidly expanding self-managed pension fund market in Australia, Coinbase Global Inc., the top US cryptocurrency exchange, is planning to launch customised services to meet the increasing demand. This initiative is being launched during a period of increased interest and investment in the cryptocurrency ecosystem, both domestically and internationally.
The managing director of Coinbase for Asia-Pacific, John O’Loghlen, has announced plans to create customised services for self-managed pension funds in Australia. With a sizeable chunk of Australia’s $2.5 trillion pension system—roughly $1 billion—allocated to cryptocurrency in these portfolios, the action highlights Coinbase’s dedication to growing its footprint in important international markets.
With a market capitalization of almost $600 billion and a steady increase, the self-managed pension fund market in Australia offers cryptocurrency exchanges such as Coinbase a profitable prospect. A report released by the Australian Taxation Office indicates that approximately 25% of this portfolio consists of digital assets, indicating that Australian investors are becoming more and more interested in cryptocurrencies.
Australian institutional money managers have historically shown reluctance towards crypto assets, despite the asset class’s potential for growth, citing concerns about volatility and past scandals. But the Australian pension system’s self-managed super funds represent a different investor class that might be more receptive to putting some of their money into digital assets.
With its specially designed services for self-managed pension funds, Coinbase hopes to make things easier for these investors by providing a safe and easy way for them to trade and store cryptocurrency. O’Loghlen emphasised Coinbase’s emphasis on offering a smooth trading experience for long-term investors by highlighting the possibility of these funds making a single allocation to digital assets and taking a “set it and forget it” approach.
The announcement coincides with a larger trend of growing institutional interest in cryptocurrencies, which has been aided by regulatory developments like the US Securities and Exchange Commission’s (SEC) approval of spot Bitcoin ETFs. With the introduction of cryptocurrency products by major asset management platforms, there is a growing recognition of digital assets as a real class of investments.
Additionally, Coinbase’s entry into Australia comes ahead of the country’s anticipated introduction of spot cryptocurrency exchange-traded funds (ETFs). Jurisdictions such as Hong Kong have already started trading spot Ethereum ETF products and Bitcoin, following the US model. According to reports, Australian companies like Van Eck Associates Corp. and BetaShares Holdings Pty are getting ready to launch offerings, indicating that the country’s financial system is beginning to accept cryptocurrencies.
But despite all of the excitement about cryptocurrency’s potential, some cautious voices have surfaced. Expert in private wealth management Michael Houlihan has issued a warning against overexposure to high-risk assets, expressing worries regarding the speculative and volatile nature of cryptocurrencies. The adoption of digital assets is growing despite these cautions, and even established financial institutions like Wells Fargo are getting involved.
Coinbase has also announced the addition of three new altcoin perpetual futures contracts: Jupiter (JUP), Token (TNSR), and Jito (JTO), in response to the increasing demand for cryptocurrency trading options. Users will have even more investment options when these contracts become tradeable on the Coinbase Exchange and Coinbase Advanced platforms.
Amidst the crisp morning air in Canberra, there are other noteworthy developments taking place. While AustralianSuper, the country’s largest pension fund, intends to increase its investment in critical minerals over the next five years, shareholders in mining giants BHP and takeover target Anglo American await further proposals. Furthermore, wage growth in Australia has unexpectedly slowed, which has economists worried about the long-term effects on monetary policy.
Global economic dynamics are changing in the meantime, with Wall Street reaching record highs and bond yields falling due to expectations of a rate cut by the Federal Reserve. Amid concerns of geopolitical unrest, Singapore installs Lawrence Wong as its fourth prime minister, and China is debating steps to calm its real estate market.
Population growth in New Zealand is slowing down as fewer people immigrate and more people look for work overseas. Australia is waiting for important announcements against the backdrop of global economic trends, such as the release of April employment data and a speech by Assistant Governor Sarah Hunter of the RBA.