Coinbase plans to cover Australian pension funds
Coinbase plans to cover Australian pension funds
Coinbase, the largest cryptocurrency exchange in the United States, has assessed the growing demand in the Australian superannuation sector and intends to expand its offering in this direction.
Coinbase is developing a specialized service for a significant portion of Australia's $2.5 trillion superannuation system, which is managed by private fund managers, according to John O'Loghlen, Regional Managing Director for Asia Pacific.
According to the latest data from the Australian Tax Office, self-managed super funds currently have about A$1 billion ($664 million) invested in cryptocurrencies, Bloomberg reported.
Thanks to the recent influx of funds and a notable 55% increase in the price of Bitcoin, the crypto sector could see record growth this year. However, Australian institutional fund managers remain cautious about the digital asset sector, fearing the high volatility of cryptocurrencies.
John O'Loghlen spoke about the strategy these funds are focusing on. "Self-managed super funds might just make a single allocation, set it, and forget it. We are working on an offering to service those clients really well on a one-off basis – to have them trade with us and stay with us".
The broad cryptocurrency market has gotten a big boost this year from the launch of US exchange-traded funds (ETFs), which helped Bitcoin hit an all-time high in March.
Coinbase intends to capitalize on the growing investor interest in digital assets as it expects to launch several more cryptocurrency ETFs in Australia before the end of 2024, including potential offerings from VanEck Associates Corp. and BetaShares Holdings Pty.
This strategic move by Coinbase demonstrates its commitment not only to expanding its global footprint but also to innovating across sectors of the investment community by providing tailored services to meet the unique needs of self-managed super funds in Australia.
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