- Aussies now hold around AUD$1 billion in crypto assets in self-managed super funds (SMSFs), up from AUD$240 million just 3 years ago.
- This growth is driven in part by the launch of Bitcoin Spot ETFs, which have increased investor confidence and eased adoption.
- Investors are still unable to access crypto-specific financial advice, an issue that could become more urgent as adoption grows and more inexperienced investors enter the crypto market.
Australians are now holding about AUD$1 billion worth of crypto in their self-managed super funds (SMSF) according to Australian Tax Office (ATO) figures published in a report in The Sydney Morning Herald. That’s a more than four-fold increase on the AUD$240 million of crypto held in Aussie super funds just three years ago.
Related: SEC Again Delays Ethereum ETF Applications by BlackRock and Fidelity
Of course, the value of the crypto held in super funds fluctuates enormously with the ups and downs of the crypto market—but this recent data does suggest an increasing amount of crypto being held in SMSFs.
Crypto In Super To Become More Common, But It’s Not For Everyone
Speaking to SMH, Jason Titman, the Chief Operating Officer at Brisbane-based crypto exchange Swyftx, said that he’d seen a large increase in the number of users looking to add crypto to their SMSF:
A significant number of crypto investors in Australia want to allocate at least a percentage of their retirement funds to cryptocurrencies.
Jason Titman, Swyftx Chief Operating OfficerTitman said the uptake was largely related to the launch of Bitcoin spot ETF products by some of the world’s largest asset managers, such as BlackRock and Fidelity, which have given crypto credibility in the eyes of some previously sceptical investors.
It’s widely expected that the growth of Bitcoin ETFs and the launch of other crypto-based ETFs over the next few years will further increase the demand for crypto in super funds. These products appeal to many mainstream investors because they’re highly regulated, easier to invest in and manage, and remove many of the technical hurdles around crypto such as self-custody.
Crypto Financial Advice Needed As Adoption Grows
Titman also noted that financial advisors in Australia are not currently allowed to give advice on crypto, something which he says should change, pointing out crypto is a very high-risk asset class and investors were currently required to essentially go it alone.
Related: Senate Hopeful John Deaton Begins Accepting Crypto Donations
While Titman’s preference is for investors to have access to crypto-specific advice, he also noted the need for advice may not be as high as it is with other asset classes:
A relatively high percentage of cryptocurrency users in Australia are experienced traders, so this isn’t necessarily a ‘must-fix’ today issue.
Jason Titman, Swyftx Chief Operating OfficerHowever, he said the need for professional advice would grow as ease of adoption continues to improve and more inexperienced investors start to dabble in crypto.
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