Australian SMSFs Sidestep Crypto Boom Amid Regulatory Uncertainty

Australian Retirement Funds Omit 2025 Crypto Surge

Crypto investments within Australian Self-Managed Super Funds (SMSFs) showed a modest decline of 4% year-on-year in June 2025, despite a 60% surge in the price of Bitcoin over the same period. According to the Australian Taxation Office (ATO), SMSF crypto holdings were valued at approximately A$3.02 billion ($1.97 billion) in June 2025, down from A$3.12 billion in June 2024, after adjustments for consistent valuation [1]. Simon Ho, head of SMSF strategy at Coinstash, noted that the figure was “undercooked” because it was based on tax return data due by May 2026 [1].

The data, however, reveals a longer-term upward trend in crypto adoption within SMSFs. From June 2023 to June 2025, crypto holdings increased by about 41%, aligning with a broader regulatory push toward clarity in the crypto sector. The Australian government released a token mapping consultation paper in 2023, signaling a growing interest in legitimizing digital assets within the retirement framework [1]. This trend has not gone unnoticed by major crypto exchanges, with both Coinbase and OKX introducing SMSF-specific services to streamline crypto access for Australian retirees [2].

SMSFs, which account for about 25% of Australia’s A$2.7 trillion retirement savings system, are increasingly seen as a gateway to broader crypto adoption. As of March 2025, SMSFs held A$1.7 billion in digital assets, a sevenfold increase since 2021 [2]. The rise is attributed to the flexibility SMSFs offer individuals in managing their retirement portfolios, a feature particularly appealing to younger investors. Data from Independent Reserve indicates that 53% of Australians aged 25–34 hold crypto, potentially signaling a demographic shift in retirement investment strategies [1].

The push for crypto inclusion in SMSFs has coincided with broader global trends. In the United States, President Donald Trump signed an executive order in August 2025 allowing 401(k) plans to include cryptocurrencies, reversing prior caution from the Department of Labor [2]. This shift mirrors Australia’s evolving regulatory landscape and reflects a growing consensus among policymakers that crypto should be integrated into retirement portfolios. Fidelity Investments had already introduced a Bitcoin 401(k) option in 2022, though it faced regulatory scrutiny [2].

Despite the enthusiasm, experts remain cautious. Lachlan Dynan of Deutsche Bank has warned that Australia’s superannuation system, with its global investments and liquidity challenges, could be vulnerable to shocks if exposed to volatile assets like crypto [3]. However, the pandemic demonstrated the system’s resilience, with $38 billion in early withdrawals without market destabilization. As SMSFs continue to expand their crypto exposure, the industry is urging the newly reelected Australian government to prioritize digital asset legislation to avoid falling behind global markets [1].

Source:

[1] DIY retirement savers in Australia trim crypto nest eggs by 4% (https://cointelegraph.com/news/crypto-investment-australia-retirement-funds-ato)

[2] Coinbase, OKX push crypto into Australia's retirement system (https://cointelegraph.com/news/coinbase-okx-crypto-australia-retirement-system)

[3] Coinbase, OKX Unlock Australia's $2.8 Trillion Pension Pot for ... (https://finance.yahoo.com/news/coinbase-okx-unlock-australia-2-125938821.html)