AMP has become Australia’s first superannuation fund to invest in Bitcoin. The company confirmed Thursday it had allocated approximately $27 million, or 0.05% of its $57 billion in assets under management, to the crypto asset, purchasing it at prices between $60,000 and $70,000.

Words started getting around following Steve Flegg’s LinkedIn post, where the AMP senior portfolio manager stated that the firm had “taken the plunge” as Bitcoin wrapped up a “barnstorming year.”

The wealth and pensions manager opted to add “a small and risk-controlled position” to its Dynamic Asset Allocation program after thorough testing and consideration by its investment team, said Stuart Eliot, AMP’s head of portfolio management, in a recent interview with Super Review.

The Bitcoin investment is part of a broad diversification strategy to enhance returns and manage risk, according to Eliot. AMP is recognizing the growing trend of institutional investors entering the crypto market, as evidenced by the launch of many crypto ETFs over the last year.

AMP’s investment marks a milestone for public-offer super funds, according to University of NSW economist Richard Holden, who noted that self-managed super funds already hold $2 billion to $3 billion in crypto assets.

Caroline Bowler, chief executive of Australia-based crypto exchange BTC Markets, supported the move, stating:

“The crypto market has grown too significant to ignore. It’s not just about the buzz, it’s about the real potential Bitcoin holds as part of a diversified investment strategy.”

Industry-wide skepticism

Many other major funds, including AustralianSuper, Australian Retirement Trust, and MLC, have expressed skepticism about direct crypto investments.

Superannuation fund AustralianSuper, the largest in Australia, said it would not follow AMP’s lead, but has explored blockchain investments.

Australian Retirement Trust, managing A$230 billion in assets, said it has no plans to invest in crypto or Bitcoin in the near future.

As with AustralianSuper and Australian Retirement Trust, MLC is not investing in crypto at present, but it is open to the possibility in the future. MLC’s chief investment officer Dan Farmer stated it was a case of “not yet, rather than not ever” regarding crypto investments.