Australia’s SMSFs Embrace Crypto as Regulation and ETFs Fuel New Wave of Adoption

Australia’s Self-Managed Super Funds (SMSFs) are increasing their exposure to cryptocurrency as demographic change, regulatory momentum and expanding ETF access reshape portfolio construction. Industry participants point to a combination of behavioural and structural shifts supporting broader consideration of digital assets within diversified strategies.

Justin Arzadon of Betashares said trustees are widening allocations beyond traditional shares and property towards alternatives with differentiated risk and return characteristics. He noted that crypto is increasingly assessed within disciplined portfolio frameworks rather than as a peripheral holding. 

A growing share of newly established SMSFs is led by younger trustees who are generally more familiar with digital assets and open to measured long-term allocations. He added that crypto ETFs have reduced access barriers by offering regulated and transparent exposure compatible with SMSF compliance requirements.

Related: Malaysia’s Central Bank Launches Stablecoin, Tokenised Deposit Pilots

ETF Expansion and Oversight

Vakul Talwar of Crypto.com said legislation currently before Parliament is strengthening investor confidence by introducing clearer guardrails and protections. He also highlighted an expanding pipeline of crypto ETF products over the past 12 to 18 months, expected to continue into 2026.

Australian crypto ETF market capitalisation rose to US$434 million (AU$611.94 million) in 2025 from US$236 million (AU$332.76 million) in 2024. More broadly, the ETF sector recorded US$3.76 billion (AU$5.30 billion) in January inflows, lifting funds under management to US$238.37 billion (AU$336.10 billion) across 545 funds. 

Passive strategies attracted US$3.35 billion (AU$4.75 billion), significantly exceeding active inflows of US$353.19 million (AU$501 million). Against this backdrop of expanding regulated ETF participation, industry leaders view 2026 as pivotal for wider SMSF crypto adoption.

Related: Japan Eyes Crypto ETFs as Regulator Floats 2028 Timeline

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