Why is crypto gaining ground in SMSFs?

BTC MarketsApr 8th 2025

Cryptocurrency has gone from the fringe of finance to a featured topic in investment circles, including within self-managed super funds (SMSFs). But what does that really mean for trustees looking to navigate this emerging space?

In a recent episode of The SMSF Experts Podcast, BTC Markets CEO Caroline Bowler sat down with Shelley Banton, head of technical at ASF Audits, for a wide-ranging discussion on the role of crypto in superannuation. They discussed how digital assets like Bitcoin and Ethereum can be considered within the context of SMSF portfolios.

Why crypto belongs in the SMSF conversation

According to Shelley, SMSFs began entering the crypto space around 2017, a trend that has continued to develop steadily. As with other assets, digital assets must meet compliance requirements, including the sole purpose test, investment strategy, and the fund’s trust deed.

“I’m thinking primarily around the larger asset class, something liquid, with a history of liquidity, and a price history you can actually look at and understand. Bitcoin or Ethereum is quite an easy first foray in because you can do all of those things with it,” Caroline said.

Accessibility without overexposure

A common misconception is that crypto requires substantial capital to get started. But as Caroline pointed out during the podcast:

“You do not have to buy one whole Bitcoin to get exposure to Bitcoin. If you've got $10, you can just buy $10 worth of Bitcoin, and you do not have to justify the expense of the outlay to buy more than that,” she said.

She also acknowledged that many trustees are cautious and “just want to dip [their] toe in and not do too much because they don’t want the risk, which is completely valid.”

Security, compliance, and trustee responsibility

In the podcast, Caroline emphasised that one of the most important aspects of SMSF crypto investing is getting the basics right.

“Accounts should be opened in the name of the fund, not the individual, and private keys must be securely stored. If lost, those keys, and the assets they protect, are gone for good.”

Caroline also cautioned trustees to scrutinise platforms and product offerings closely. High-risk instruments like derivatives and CFDs, especially when offered without regulatory oversight, may not be suitable within an SMSF context.

“Trustees don’t need to be in everything. Let the industry mature,” she noted.

Shelley echoed these concerns, highlighting the importance of trustee education and transparency in the sector. She stressedthe need for SMSFs to choose regulated platforms and to fully understand the digital products they’re engaging with.

Looking ahead

Tokenisation is emerging as a powerful trend in financial markets. It has the potential to make a wide range of assets, such as money market funds or company shares, available on blockchain infrastructure. This shift could streamline how trustees engage with financial products and enhance transparency, traceability, and efficiency.

As adoption increases globally, Australian SMSFs may begin to encounter more tokenised investment options and infrastructure, further integrating digital assets into mainstream portfolio thinking.

To hear more of Caroline's insights on SMSFs and digital assets, listen to the full episode of The SMSF Experts on your preferred platform:

Learn more about BTC Markets’ SMSF offering, including tax tools, designated accounts, and personalised service.

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