Australia’s Hostplus Pension Fund Considers Crypto Option

• Hostplus plans to offer a digital asset option to members via its Choiceplus feature.
• Several users have demanded a crypto investment plan on Hostplus.
• A digital asset offering from Hostplus will first undergo regulatory approval.

Australia’s Hostplus pension fund is considering adding a crypto investment option for members. The feature may launch as early as next year through its Choiceplus platform. The move follows growing member demand for digital asset exposure within retirement portfolios.

Hostplus Plans Crypto Access Through Choiceplus

According to a Bloomberg report, the fund, which manages over $105 billion, is concluding plans to offer Bitcoin and other digital assets to customers through its Choiceplus investment feature. 

Hostplus Chief Investment Officer Sam Sicilia said in an interview that Choiceplus allows individuals to self-manage their retirement savings portfolio. In the meantime, only about 1% of the fund’s total assets are invested in Choiceplus.

Sicilia noted that his company has received several requests from members asking to be given the option of investing in cryptocurrency. He noted that it could start offering digital assets options as soon as next year. However, he emphasized that any plan to offer a digital asset would require regulatory approval, noting that Hostplus needs to address a range of issues to navigate the process, including consumer protections.

Hostplus Follows AMP’s Crypto Move

Hostplus’s digital asset consideration is a rare occurrence in Australia’s fast-growing $4.5 trillion pension fund ecosystem. AMP became the first company within the pension funds sector to adopt cryptocurrency after its 2024 announcement of an investment in Bitcoin Futures. 

Bitcoin has experienced a roller-coaster price movement since AMP’s announcement, surging above $126,000 to achieve an all-time high, and subsequently declining significantly to trade slightly above $70,000 at the time of writing, according to TradingView’s data.

Currently, approximately $1.2 trillion of Australia’s pension system is in self-managed super funds, resident outside major pension funds. Meanwhile, users have up to $3 billion invested in crypto via SMSFs, according to regulators’ data.

Sicilia acknowledged crypto’s evolution over the past decade, since Hostplus had a first look at the investment instrument. He noted that his firm is at the stage where it is revisiting digital currencies. According to Sicilia, Hostplus’s scope extends beyond Bitcoin and covers a broader range of digital assets. However, he stated that the fund is still in the design phase of considering what it might offer members.
Related: Australian Pension Fund AMP Enters Bitcoin Futures Market