At Freedom Financial Solutions FFS, we aim to keep our clients informed about emerging financial trends that may impact Self-Managed Super Funds (SMSFs). One such trend is the growing interest in cryptocurrency as a potential asset class within SMSFs.
According to Caroline Bowler, CEO of BTC Markets, digital assets like Bitcoin and Ethereum are increasingly being viewed as part of the “alternative investments” category. Speaking on the ASF Audits podcast, Bowler noted that crypto assets offer liquidity and historical price data—features that may appeal to trustees exploring diverse asset types.
“Bitcoin or Ethereum are often a sensible starting point,” Bowler said. “They’re easy to access, and there’s a history that allows people to understand their performance.”
One reason crypto may be attracting interest is its accessibility. Unlike traditional shares, which often require full-unit purchases, cryptocurrency can be bought in fractional amounts—sometimes for as little as $10. This allows trustees to gain exposure without significant initial outlay.
Shelley Banton, Head of Technical at ASF Audits, pointed out that crypto has been on the radar of SMSFs since around 2017. She clarified that SMSFs are permitted to invest in crypto provided it meets the sole purpose test, aligns with the trust deed, and is consistent with the fund’s investment strategy.
That said, it’s important to consider operational limitations and risks. For example, some banks have recently restricted online payments to certain BSBs used for crypto investments, citing customer safety concerns. These restrictions have affected transactions with platforms like Coinspot and Ainslie Crypto. You can read more about that here.
So before you invest in crypto make sure you can make the payment from your SMSF bank account! If you can’t read this to find out what you can – and can’t – do.
As accountants, we don’t offer investment advice. Our role is to provide you with clear, up-to-date information so you can make informed decisions that suit your fund’s needs. If you’re considering adding digital assets to your SMSF or simply want to understand how it all works, we’re here to help you navigate the compliance and reporting aspects with confidence.
