Coinbase develops new service to target Australia’s $664b pension market

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As an analyst with a background in the financial industry and a strong interest in cryptocurrencies, I find Coinbase’s new product offering for Australia’s self-managed pensions sector to be an intriguing development. The potential market size, represented by about a quarter of Australia’s $2.5 trillion pension system, is substantial.

Coinbase, a prominent US cryptocurrency exchange, is developing a new service aimed at Australia’s expanding self-managed pension market, allowing investors to hold and trade digital assets.

Coinbase, a leading cryptocurrency exchange, is working on an unnamed service designed for investing in crypto assets. According to Bloomberg’s sources, this offering is intended for portfolios representing approximately 25% of Australia’s $2.5 trillion pension fund system. Coinbase Asia-Pacific managing director John O’Loghlen confirmed the development.

During the discussion, O’Loghlen indicated that the latest approach from the exchange is specifically tailored for clients who prefer making one-time investments instead of frequently or repeatedly using the service provider’s platform.

John O’Loghlen suggests that individuals managing their own superannuation funds may choose to make a sole investment allocation and then leave it unchanged. Our company is developing a solution tailored for such clients, enabling them to execute trades through us and maintain their relationship with us.

The specific timeline for Coinbase’s introduction of its new service remains undetermined. Notably, news emerges that Australia may soon adopt bitcoin spot ETFs, as the US and Hong Kong have already done so.

According to crypto.news’s late April report, it’s predicted that the Australian Securities Exchange (ASX) will approve the first Bitcoin Spot Exchange-Traded Funds (ETFs) for its main board by the end of 2024. Several issuers, such as BetaShares, VanEck, and DigitalX, are currently developing their products for launch on ASX. However, a definitive schedule for the approval of Bitcoin Spot ETFs has yet to be announced.

As a crypto investor, I can tell you that Jamie Hannah, the deputy head of investments and capital markets at VanEck Australia, holds a strong belief that self-managed superannuation funds (SMSFs), which account for approximately a quarter of Australia’s $2.3 trillion pension market, could potentially become significant investors in spot crypto funds.

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2024-05-16 10:04