After the invention of Bitcoin back in 2009, it has gained the mainstream media. Till recently, it has given massive returns to all the investors, but at present, the market trend has reversed after the civil unrest in Ukraine, rising inflation, and the looming risk of inflation. But this has not convoked investors to move away from cryptocurrencies. In Australia, the Self-Managed Super Funds (SMSFs) have started to invest. Based on the ATO survey data, SMSFs invested $168 million in the cryptocurrency asset class.
New Venture Wealth has been helping Australians in their journey towards investing in cryptocurrency. We have helped many Crypto SMSF Australia and have guided thousands of investors through setting up their accounts and other processes down the road. If you are new to the term SMSFs and have questions, then we will try to answer all your questions here:
Can SMSFs invest in cryptocurrency?
Yes, Self-Managed Super Funds can invest in cryptocurrencies like bitcoin and Ethereum. Based on ATO data, more than 3.3 million Australians have invested in cryptocurrencies, an increasing trend that the market has been witnessing over the years. However, the ATO has put forward some rules when it comes to investing through cryptocurrencies if the investment:
- It is allowed under the fund’s trust deed and is by the fund’s investment strategy
- Complies with SISA and SISR regulatory requirements
Why are 3.3 million Australians investing in cryptocurrencies?
As discussed above, cryptocurrency has been the best-performing asset. Even a small cryptocurrency investment could have led to outsized returns in the past decades. Investors increasingly view cryptocurrency as a long-term investment and have started allocating a major portion of their SMSF funds to it. There are other reasons why investors are flocking to this new asset class, and the answer is the decline.
How can I set up an SMSF that invests in cryptocurrency?
If you’re planning on investing in cryptocurrencies through an SMSF, it’s important to pay particular attention when creating the trust and fund strategy; you must follow the following procedures for creating SMSF accounts.
- Decide whether you need an individual or corporate SMSF
- Appoint the trustees & set up the trust and trust deed that allows cryptocurrency as an investment
- Register your fund and get an ABN, and set up a bank account for your SMSF
- Rollover your funds to the SMSF & Start investing
You can grow your return while investing in SMSF cryptocurrency, as digital currency is a fast-growing asset class attracting millions and is a great way to grow their retirement funds with cryptocurrencies. We’re here to help make it easy.