Coinbase, a prominent global cryptocurrency exchange, plans to develop a service specifically for Australia's self-managed retirement sector. The integration of cryptocurrency into the superannuation sector, particularly in self-managed super funds [SMSFs], is not a recent development. Since March 2019, there has been a notable increase in the inclusion of crypto assets in Australian SMSFs. John O'Loghlen, the company's managing director in Asia Pacific, shed light on this development.
The latest figures from the Australian Taxation Office show that almost 1 billion Australian dollars have now been invested in cryptocurrencies within these funds. This is a significant jump from 197 Australian dollars in December 2019. However, the volatility and risks associated with cryptocurrencies have led to significant losses for some investors. A March 2023 report from Reuters highlighted that thousands of Australians with SMSFs investing in cryptocurrencies have collectively lost millions.
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Coinbase's new initiative
To meet this growing interest, Coinbase is developing a specialized service for SMSF investors. The company pointed out that these funds often make a single long-term investment, underscoring the need for a service that supports this investment approach. O'Loghlen said,
“Self-managed super funds may be able to make just one allocation, set it and forget it. We are working on an offering to serve these customers very well on a one-off basis so that they can do business with us and stay with us.”
The increasing interest in cryptocurrencies among SMFSF investors can be linked to the overall momentum in the crypto market. This comes especially after the recent adoption of spot ETFs in the US. This trend is expected to continue, with similar approvals possible in Australia this year. However, O'Loghlen clarified that Coinbase does not view this initiative as a competitor to ETF providers. Rather, it aims to leverage the growing interest in cryptocurrency investing.
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