DIY super funds getting into Bitcoin and other cryptocurrencies
More do-it-yourself super funds are investing in cryptocurrencies as interest in investing in digital currencies rises among investors generally.
While no hard data will be available until later next year when the Tax Office releases figures for the first time on how much cryptocurrency is held by funds, industry players say there are more self-managed super funds (SMSFs) investing.
Fred Schebesta, a co-founder of comparison site Finder as well as digital currency exchange HiveEx, notes a marked increase in enquiries from SMSFs looking to buy cryptocurrency.
And Adrian Przelozny, the chief executive of Sydney-based digital currency exchange Independent Reserve, has about 6000 self-managed super funds on the platform, with half of that growth coming in the past year.
HiveEx.com commissioned a survey of almost 2000 Australians and found the portion owning at least some crypto has almost tripled since the start of this year to 13.5 per cent.
In 2014, the Tax Office clarified it is legitimate to hold crypto inside an SMSF as long as trustees adhere to usual rules that apply to regular investments.
Whether crypto is here to stay or just another fad, only time will tell. Schebesta said investors should not put anything except a small fraction of their wealth into crypto, as it is risky.
To read more, please click on the link below…