Australia’s A$4.3 trillion ($2.8 trillion) retirement system is one of the best regulated savings pools in the world. Now, it is slowly becoming a new path for cryptocurrency, as exchanges like Coinbase Global Inc. and OKX are now offering products that can guide pension savings into digital coins.
According to a recent report from Bloomberg, the main push is happening through self-managed superannuation funds, or SMSFs.
These are retirement funds where people manage their own savings and choose how to invest. SMSFs already make up about one-fourth of Australia’s retirement pool. They are very different from large pension funds, which mostly avoid risky assets like crypto.
“It does make sense that we’re probably seeing a bit more interest in crypto in the self-managed super fund space first,” Fabian Bussoletti, technical manager at the SMSF Association said in the report.
Major Exchanges Join the Race
Moreover, Coinbase is close to launching a service only for SMSFs. More than 500 investors are already on its waiting list, according to John O’Loghlen, the company’s Asia-Pacific managing director.
OKX has already started a similar service in June, and its chief executive for the region, Kate Cooper, said demand is beyond their early expectations.
Right now, the digital assets inside SMSFs are still small. The Australian Tax Office said these funds held about A$1.7 billion in March. But this is already seven times higher than the amount in 2021. Both exchanges believe the growth will be fast and could possibly push regulators and larger funds to respond. For now, AMP is the only major pension provider to have disclosed any crypto exposure.
Meanwhile, a survey of people on its waiting list showed 80% want to create a new SMSF, and 77% plan to invest up to A$100,000 in crypto.
A Generational Split in Demand
O’Loghlen said the interest comes from two generations. The new investors are adding crypto because their children are pushing them to try it, while the younger investors are opening SMSFs earlier than usual and are putting much more into digital coins than older investors.
Bitcoin has gone up almost 20% this year and even hit a record high last month. That came after the U.S. President Donald Trump signed an order that made it easier for American retirement funds to invest in crypto. Australia may also be a test case for how far crypto can move from a niche bet to a normal pension investment.
However, regulators are careful. The Australian Tax Office reminded investors that “the objective of superannuation is to preserve savings to deliver income for a dignified retirement.”
Also Read: Peter Schiff: Bitcoin in Retirement Plans Makes U.S. Problem Worse
