AMP, one of Australia’s largest superannuation funds, has taken a cautious step into the digital asset space with a $27 million Bitcoin investment, marking a first for the Australian pension industry. Meanwhile, in China, Alipay, the country’s leading payment platform, has drawn attention by featuring advertisements promoting Bitcoin ETFs, signaling a subtle yet intriguing shift in a market known for its strict anti-crypto stance. 

AMP’s $27 Million Bitcoin Investment Marks a Turning Point for Australian Superannuation Funds

AMP, one of Australia’s leading superannuation funds, has become the first major fund in the country to invest in Bitcoin (BTC). With a $27 million allocation to the digital asset in May 2024, AMP has joined the global trend of institutional investors exploring Bitcoin as a portfolio diversifier. 

The $27 million investment represents a modest 0.05% of AMP’s total $57 billion in assets under management (AUM). According to Financial Review, the fund acquired Bitcoin during its price range of $60,000 to $70,000, positioning itself to benefit from the cryptocurrency’s upward trajectory. AMP’s move comes amid Bitcoin’s historic price rally, fueled by a surge in market sentiment following Donald Trump’s electoral victory in November 2024. Bitcoin recently breached the $100,000 milestone, signaling unprecedented confidence among market participants.

Despite this bold move, other Australian superannuation funds remain hesitant to follow suit, citing the nascent asset class’s volatility and regulatory uncertainty as primary concerns.

AMP’s investment aligns with a broader global trend of pension funds integrating Bitcoin into their portfolios to capitalize on its growth potential and hedging properties. Institutional interest in Bitcoin has surged in recent years, with pension funds worldwide seeking to diversify holdings and enhance returns amid persistently low yields in traditional assets.

In July 2024, Michigan’s state pension fund disclosed a $6.6-million exposure to Bitcoin through ARK 21Shares’ Bitcoin exchange-traded fund (ETF). This marked one of the first instances of a US state pension fund actively participating in the Bitcoin market.

South Korea’s National Pension Service (NPS), the world’s third-largest public pension fund, followed in August with the acquisition of 24,500 MicroStrategy shares. Market participants view investments in MicroStrategy as a leveraged Bitcoin play due to the company’s significant Bitcoin holdings, financed through convertible notes and equity offerings.

The trend has continued to gain momentum across regions. In October, Florida’s Chief Financial Officer, Jimmy Patronis, advocated for the state’s public pension funds to explore Bitcoin investments.

More recently, United Kingdom-based pension manager Cartwright announced a 3% allocation to Bitcoin in November. Sam Roberts, Cartwright’s director of investment consulting, lauded Bitcoin’s “unique asymmetric risk-return profile” as a compelling reason for the allocation. Roberts expressed optimism that the move would inspire other institutional investors in the UK to diversify into Bitcoin, setting a precedent for broader adoption.

AMP’s decision to invest in Bitcoin suggests a willingness to embrace innovative asset classes while maintaining a conservative allocation. By integrating Bitcoin into its portfolio, the fund aims to benefit from the cryptocurrency’s status as a hedge against inflation and its potential for outsized returns.

The timing of the investment also demonstrates AMP’s strategic foresight. Bitcoin’s continued appreciation and the global recognition of its role in a diversified portfolio have positioned AMP as a trailblazer among Australian superannuation funds.

Skepticism Persists in Australia

Despite AMP’s bold move, the Australian superannuation industry remains largely cautious toward Bitcoin. Many funds view the asset as too volatile and speculative to fit within their long-term investment strategies. This skepticism is a stark contrast to the growing interest seen in regions like the United States, South Korea, and the United Kingdom, where pension funds are beginning to embrace Bitcoin as a legitimate investment option.

AMP’s groundbreaking $27 million investment in Bitcoin marks a significant milestone for institutional adoption in Australia. While other superannuation funds may be hesitant to follow, AMP’s move could set the stage for a broader shift in the investment strategies of Australian pension funds.

As Bitcoin continues to break records and solidify its role as a key asset in institutional portfolios, AMP’s foray into the cryptocurrency market could prove to be a transformative moment for the superannuation industry. Whether this sparks a trend among other funds remains to be seen, but the potential for Bitcoin to reshape institutional investing is undeniable.

Alipay’s Bitcoin ETF Ads Stir Crypto Buzz in Mainland China Amid Strict Regulations

Alipay, China’s largest payment platform with over 1 billion users, has caused a stir in the crypto community after reportedly featuring advertisements related to Bitcoin and cryptocurrency exchange-traded funds (ETFs) on its platform. According to reports from Sina Finance, mainland Chinese users recently saw promotional ads for spot Bitcoin ETFs on their Alipay homepages, marking a notable development in the country’s otherwise stringent approach to digital assets.

The advertisements reportedly promoted cryptocurrency investments with messages such as: “Global investment, cryptocurrency soaring, 10 yuan minimum investment, get on board now.” The ads directed users to Huabao Overseas Technology C (QDII-FOF-LOF), a fund that reportedly offers indirect exposure to Coinbase stock and the ARK 21Shares Bitcoin ETF.

While these ads signal an unexpected softening toward crypto-related services, they come with notable restrictions. Mainland China users are currently limited to purchasing a maximum of 1,000 Chinese yuan ($137) worth of the fund’s shares daily, with a minimum investment threshold of 10 yuan ($1.40).

Prominent market observer Colin Wu noted on X that Huabao Technology and other similar funds advertising cryptocurrency are leveraging the Qualified Domestic Institutional Investor (QDII) structure. This regulatory framework allows Chinese investors to access overseas investments indirectly.

Crypto Ads Raise Eyebrows

The first reports of crypto-related ads on Alipay emerged on Dec. 11, sparking widespread discussion in the Chinese blockchain community. Some users speculated that this could be a precursor to enabling direct Bitcoin purchases through Alipay, a move that would represent a seismic shift in China’s crypto policy.

However, the appearance of these ads may not signal an official endorsement from Alipay’s parent company, Ant Financial Services Group. Yifan He, CEO of Chinese blockchain firm Red Date Technology, suggested that the ads might have been published by third parties exploiting regulatory loopholes. “It doesn’t mean anything. They will disappear soon,” He stated, downplaying the significance of the ads.

China has long maintained a strict anti-crypto stance, with Alipay itself banning all Bitcoin-related transactions in 2019. This ban aligned with the Chinese government’s broader crackdown on cryptocurrencies, which began with the prohibition of crypto exchanges in 2017 and escalated with an interdepartmental clampdown in 2021.

Despite these measures, Chinese authorities have repeatedly emphasized that crypto assets are considered legal property protected under law. 

The crypto ads on Alipay have reignited speculation about a potential policy shift in China. Earlier this year, Galaxy Digital CEO Mike Novogratz fueled rumors that China might lift its crypto ban amid the ongoing 2024 bull market. However, skepticism remains high, as the Chinese government has shown no official signs of reversing its restrictive crypto policies.

Bloomberg analyst Jack Wang noted in April that Hong Kong’s crypto ETFs remain unavailable to mainland Chinese investors, reinforcing the divide between the two jurisdictions. Nevertheless, smaller developments, such as Nano Labs—a Hangzhou-based crypto mining-chip designer—accepting Bitcoin as payment via Coinbase, suggest a nuanced shift in attitudes toward digital assets.

The appearance of Bitcoin ETF ads on Alipay is a significant moment for the global crypto industry, highlighting both the growing demand for digital assets and the creative strategies used to navigate restrictive regulatory environments. While these ads may not reflect an official policy change, they demonstrate the potential for cryptocurrency-related services to gain traction in markets traditionally hostile to digital assets.