A recent report shows a 400% growth of crypto assets share in “self-managed super funds” used by Australians as a means to secure their retirement life.
Official statistics released on Nov. 26 by the Australian Tax Office (ATO) show that nearly 612,000 self-managed super funds (SMSFs) are holding a total of $658.6 million (992 million Australian dollars) worth of cryptocurrencies as of the fiscal quarter ending in September 2023.
This amount represents a 400% growth within the last four years, a robust rate surpassing stocks and bonds. Namely, listed shares, which represent the largest SMSF allocation category grew 28% over the same period. Meanwhile, SMSF investments in debt securities, such as bonds, fell 5.8% over the past four years.
A larger share of crypto assets was observed in small-sized SMSF portfolios. Due to the rise of popularity in crypto allocations, local crypto exchanges increasingly offer crypto superannuation products.
Nevertheless, the amount of crypto held in self-managed retirement funds is still down 38% compared to the all-time high of nearly $1.06 billion (1.6 billion AUD) in June 2021 during the last crypto market bull run.
Self-managed super funds are also known as private superannuation funds. As the funds are managed by individuals themselves, they can control how their retirement funds are invested. Although individuals may use the help of a professional (such as a financial adviser, accountant or lawyer), they are personally liable for all the fund-related decisions. This retirement scheme is overseen by the Australian Tax Office.
In March 2023, the Australian Taxation Office implemented crypto monitoring measures to ensure tax law compliance when it comes to digital assets with the help of a new data-matching tool.