Self Managed Super Fund cryptocurrency investment strategy

Yes, you can buy bitcoin as an investment for your SMSF account. As stated by the Australian Tax Office, you can invest in bitcoin as long as it's allowed under the funds trust deed, is in accordance with the fund's investment strategy, and complies with any regulations. In Australia, SMSFs must ensure compliance with the Superannuation Industry (Supervision) Act and Superannuation Industry (Supervision) Regulations. The Australian Tax Office (ATO) is ultimately responsible for compliance.

Yes, the same as bitcoin, the crypto asset class can be part of your fund's investment strategy. You can buy, sell and trade a range of digital assets on our exchange. Assets listed on our exchange include bitcoin, Ethereum and 280 plus other leading digital assets.

For the decade between 2011 and 2021, cryptocurrency was the best performing asset class. While it was an emerging industry, it was considered more speculative and didn't attract significant investments from SMSF trustees. Now that the asset class is maturing, many SMSFs have started to invest heavily. With the associated regulations and the overall regulatory requirements now much clearer, many investors in the superannuation industry consider bitcoin and [other cryptocurrencies](https://www.cointree.com/trade/cryptocurrencies/) to be a worthwhile investment. Many investors manage their risks through the size of their allocation to crypto investments and are focused on ensuring compliance and understand the difference between the [crypto vs stock market](https://www.cointree.com/learn/cryptocurrency-exchange-vs-stock-exchange/). As always, past performance does not guarantee future performance and you should always seek financial advice from a licensed Self Managed Super professional.

Yes. There are some restrictions that SMSFs must abide by when investing in cryptocurrencies. Firstly, as the ATO has stated, SMSFs are prohibited from intentionally acquiring assets from related parties, including your partner, children, business partner or relatives. Secondly, the assets in your funds must be held separately from your personal assets. Luckily, at Cointree, it's easy to set up a separate account for your SMSF. Thirdly, all investments must be allowed under the fund's deed and fit their strategy. For any financial guidance for your SMSF, make sure you consult a licensed professional.

Unfortunately, yes. SMSFs must pay capital gains on cryptocurrency. Cryptocurrencies are considered capital gains assets and SMSFs must comply with the same regulations as they do when transacting with any other capital gains assets.

We can help you get set up with everything you need so you can start investing in crypto with an SMSF, including setting u your trust deed. We can make sure you have the right account type and that your account is kept under your SMSF name rather than your personal name, we can help you find the right digital asset, and give you all the details you need to transfer funds from your bank account to the exchange to make a purchase.

SMSFs must be run for the sole purpose of providing retirement benefits for fund members. What this generally means, according to the ATO, is that SMSF trustees or the fund members cannot directly or indirectly obtain a financial benefit when investing on behalf of the SMSF.

The ATO has determined that bitcoin and other cryptocurrencies are not money but instead are capital gains assets for an SMSF. That means you must keep records of when you acquire or dispose of crypto assets for your SMSF, as you may incur a [tax liability](https://www.cointree.com/learn/pay-tax-cryptocurrency-australia/). Luckily, we've integrated a number of tools into our platform and partnered with SMSF experts so that you can quickly and easily determine your tax obligations for your Self Managed Super Funds (SMSF).

You can custody your assets on our platform with your free multi-coin wallet. With two factor authentication and our rigorous security protocols, you can keep the assets of your crypto SMSF secure while still making it easy to trade cryptocurrency. This is a popular method, as it streamlines the process for super funds to audit the crypto holdings in their SMSF account. Alternatively, you can self-custody each crypto asset. This typically includes a secure hardware crypto wallet with a single or multiple vaults to store parts of all of your seed phrase. For more information, see our article on the [best bitcoin wallet Australia](https://www.cointree.com/learn/best-bitcoin-wallet-australia/).

You should always consult a licensed professional when seeking financial advice. At Cointree, we have collaborated with ExpertSuper to help bring trustworthy information to your users, and have integrated our platform with BGL Simple Fund 360 to help make your reporting requirements fast and efficient.

For a super fund, investing in cryptocurrency can be an exciting prospect. It's important to note that not all cryptocurrencies are the same. Certain protocols like Compound (COMP) have been designed to be more like a traditional security, while others like bitcoin (BTC) have been created to mirror the features of a commodity. To be certain of any distinctions, always consult a licensed professional.