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Australian Super Fund Hostplus Eyes Crypto for Retirement Savings

Australian pension fund Hostplus explores offering Bitcoin and crypto to its members.

  • Hostplus, a major Australian retirement fund, is exploring offering Bitcoin and other digital assets to its members via a self-directed window as early as next financial year.
  • The fund is looking beyond Bitcoin to a wider range of assets, including tokenized exposure to areas like music rights, as market access remains limited for many Australians.
  • This exploration follows the recent caution of AMP Super, which dramatically reduced its Bitcoin futures position ahead of a major market downturn earlier this year.
  • A prediction market on Myriad currently sees a 50.7% likelihood of Bitcoin reaching $84,000 rather than falling to $55,000.

Hostplus, a $105 billion Australian pension giant, is actively exploring how to offer cryptocurrency exposure to its members, potentially launching the option via its Choiceplus platform as early as next financial year. This move, according to a report, would place it among a rare group of global retirement funds willing to engage with digital assets.

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The fund’s Chief Investment Officer, Sam Sicilia, confirmed the review is driven by member demand. “There’s certainly a demand from some of our members who write in and say, ‘Why can’t I have access to cryptocurrency?’” he stated.

Consequently, the fund’s assessment now goes beyond Bitcoin to include a broader universe of digital assets. Sicilia noted this includes potential tokenized exposure to unconventional areas like music rights, marking a significant evolution in the fund’s view over the past decade.

Industry experts view the potential move positively, citing growing investor interest for legitimizing a complex asset class. “We have come a long way in the last decade, and for many Australians, digital assets are increasingly viewed as a legitimate long-term investment,” said Kraken Australia managing director Jonathon Miller.

However, significant volatility remains a substantial barrier for conservative retirement portfolios. AMP Super, an early Australian adopter, recently cut its Bitcoin futures exposure to just 0.02%, telling Investment Magazine it was shielded from this year’s sharp downturn.

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Despite recent market turbulence, some sentiment leans toward Bitcoin’s upside. On Myriad, a prediction market, users see a 50.7% likelihood of the cryptocurrency reaching $84,000 rather than falling to $55,000, even as it currently trades at $70,599.

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