Australia’s Retirement Savings Open New Chapter With Cryptocurrency Investments
Australia’s A$4.3 trillion retirement savings system is edging into digital assets as major exchanges Coinbase and OKX launch services designed for self-managed superannuation funds (SMSFs).
These DIY pensions, which already control around a quarter of the national pool, are increasingly being used to add exposure to cryptocurrencies that mainstream funds have so far avoided.
Crypto Finds A Home In SMSFs
Tax office data shows SMSF crypto holdings reached about A$1.7 billion by March 2025 — a sevenfold jump since 2021.
Much of this growth comes from younger investors setting up funds earlier than previous generations and tilting them heavily towards Bitcoin and other tokens.
Baby Boomers are also entering the space, often nudged by children who want crypto added to family portfolios.
Coinbase is preparing to launch a dedicated SMSF service with more than 500 investors already on its waiting list.
Source: Pexels
A poll of those registrants revealed that 80 per cent planned to establish a new SMSF specifically for crypto, with most intending to invest up to A$100,000.
John O’Loghlen, Coinbase’s Asia-Pacific managing director, said,
“This product will be more for buy-and-hold investors rather than active traders.”
OKX introduced a similar service in June, with its Australian chief executive Kate Cooper noting demand had “exceeded expectations.”
Institutional Hesitation And First Movers
While SMSFs lead adoption, institutional super funds have largely remained on the sidelines.
AMP Super became the first major fund to disclose a crypto allocation in May 2024, committing 0.05 per cent of its assets through Bitcoin futures.
Globally, funds in the US and UK have begun dipping into the sector, either directly or through equities linked to Bitcoin reserves.
Academic research has suggested that allocating 1–5 per cent of retirement portfolios to crypto could improve long-term risk-adjusted returns due to Bitcoin’s historically low correlation with equities and bonds.
A 2024 study found that including crypto improved portfolio Sharpe ratios by as much as 30 per cent, even though volatility increased.
Regulators Urge Caution Amid Rapid Growth
Australia’s regulators remain wary.
The Australian Securities and Investments Commission has warned that “these are highly volatile products and over-exposure can lead to substantial losses,” encouraging individuals to seek professional advice before establishing an SMSF.
The Australian Tax Office has also reminded investors that superannuation’s primary purpose is to provide retirement income, not speculative returns.
The scrutiny is not unique to Australia.
In the US, OKX agreed to pay US$500 million earlier this year over unlicensed transactions, while Coinbase was fined in the UK for servicing high-risk clients.
Locally, Binance’s Australian arm was recently ordered to appoint an external auditor to address money laundering concerns.
Shifting From Speculation To Strategy
Despite warnings, momentum continues to build.
Platforms such as Coinbase and OKX are also working with accountants and law firms to help investors set up SMSFs, which are generally cost-effective only for larger accounts due to audit and compliance requirements.
For many, crypto is becoming less of a fringe gamble and more of a calculated diversification strategy.
The Bigger Question For Retirement Funds
Coinlive believes the arrival of crypto into Australia’s pension system is not just a passing trend but a test of whether digital assets can survive within one of the world’s most regulated savings pools.
The challenge lies in whether this appetite will spread beyond SMSFs to mainstream super funds that hold the majority of retirement money.
If the industry fails to address compliance, insurance, and volatility risks, the momentum could stall.
If managed with discipline, however, crypto could reshape how retirement portfolios balance risk and growth in the decades ahead.
Jixu
