American cryptocurrency exchange Coinbase Global Inc. plans on maximizing the potential demand for Australia’s $600 billion and growing self-managed pension niche. In light of this, the United States Exchange is working on launching a service that caters to this growing demand.

Coinbase to Ride on Aussie Crypto Loophole

Asia Pacific Managing Director at Coinbase John O’Loghlen confirmed that the service is under development. According to  a report from the Australian Taxation Office, this portfolio encompasses about a quarter of Australia’s $2.5 trillion pension system with A$1 billion, equivalent to $664 million, allocated to digital assets.

A potential jump in the price of Bitcoin as well as the growing inflows could contribute to pushing the crypto assets held within these self-managed pension fund, to hit a milestone.  Meanwhile, Australian institutional money managers have exhibited their lack of interest in crypto assets over time.  Their stance is largely influenced by the scandals and risk of volatility attached to the asset class.

During an interview, the Coinbase executive stated that “Self-managed super funds might just make a single allocation and 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,” he added.

Several market observers and analysts would agree that the crypto ecosystem received a massive boost after the United States Securities and Exchange Commission (SEC) approved spot Bitcoin ETFs for trading on top investment asset management platforms.  By March, a handful of cryptocurrencies hit new levels with Bitcoin leading at an all-time-high (ATH) above the $73,000 level.

Australia May Launch Spot Crypto ETFs 

Since the U.S. debuted the offering, other jurisdictions have equally indicated their interest in following the same path. Hong Kong recently began trading spot Bitcoin and Ethereum ETF products.

There are expectations that Australia will follow suit before 2024 ends, especially with firms like Van Eck Associates Corp. and BetaShares Holdings Pty lining up offerings. Although, the region may need to deal with its mounting fear regarding the dangers inherent crypto usage and investment.

Beyond the Coinbase plans, Michael Houlihan, who runs a private wealth management business, has publicly cautioned investors to avoid taking a large stake in an asset class that is allegedly synonymous with high risks. His opinion has not stopped many firms from acquiring more crypto with Wells Fargo joining the trend recently.

Read More: Whales Buy 720 Billion Pepe Coin As PEPE Price Rally Over 100%

 

 

The post Coinbase Has Unusually Big Plans For $600B Australian Pension Funds appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am