Crypto allocations in Australia’s self-managed super funds (SMSFs) have surged by an impressive 400% over the past four years, reaching a substantial $658.6 million in holdings.
Key Takeaways
- Over the last four years, there has been a remarkable 400% increase in crypto allocations within Australia’s self-managed super funds.
- As of September, around 612,000 SMSFs collectively hold $658.6 million in cryptocurrencies, marking a substantial presence in the country’s retirement portfolios.
- Despite the surge, compliance with superannuation laws is crucial, emphasizing the need for a clear distinction between personal and SMSF crypto holdings.
- While crypto has experienced substantial growth, it constitutes only 0.1% of total net assets in Australian SMSFs, indicating room for further expansion.
Caution Amid Growth
Amid the surge in crypto adoption within SMSFs, Danny Talwar, head of tax at Koinly, emphasizes the importance of compliance with superannuation laws.
Australia’s confusing new crypto tax guidance is ‘toilet paper,’ says law firm https://t.co/LmRrTcY8gs
— Cointelegraph (@Cointelegraph) December 1, 2023
Talwar highlights that SMSF strategies should allow for crypto holdings but stresses the need for a clear separation between personal and SMSF crypto assets.
Crypto’s Share of Total Assets
Despite the impressive growth in crypto allocations, it’s noteworthy that digital assets represent only 0.1% of total net assets in Australian SMSFs.
Smaller-sized funds, however, exhibit a greater affinity for digital assets, with crypto exchanges responding to this trend by increasingly offering superannuation products.
To Conclude
The surge in crypto allocations within Australia’s self-managed super funds reflects a growing interest in digital assets as part of retirement portfolios.
While caution is advised for compliance with superannuation laws, the data indicates a significant presence of cryptocurrencies in SMSFs, with potential for further growth.
