Crypto Holdings in Super Funds Quadruple, ATO Figures Reveal

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:

Titman 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: 

However, 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.