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How SMSFs are getting exposure to digital assets
The SMSF market is entering digital asset investment through multiple pathways, each with different levels of complexity, transparency, and risk.
Wilks explained that going direct is the most common option. Trustees open an SMSF-named account on a compliant exchange and hold assets directly, or they store digital assets offline in cold wallets for additional security.
Following recent ETF launches overseas and in Australia, many SMSFs are opting for listed products that provide direct exposure to the underlying asset without requiring the trustee to manage wallets or digital custody.
Some ETFs and managed funds provide indirect exposure by tracking crypto-related equities. Trustees can also access exposure through specific listed companies, such as those holding crypto treasury reserves.
These are still niche among SMSFs, as they require higher technical understanding and more complex audit processes, but they do exist for sophisticated trustees.
Wilks emphasised that each method has different compliance obligations, especially where valuation evidence and transaction records are concerned.
Why SMSFs are entering the crypto market now
The biggest driver of change, according to Wilks, is a shift in mindset.
“If you go back a few years, people will probably say that their investments in the space were in the speculative bucket rather than a more structured approach to how they’re allocating assets across their portfolio,” he said.
Institutional adoption has been a major catalyst. The arrival of spot ETFs, major US companies adding Bitcoin to balance sheets, and high-profile endorsements from global funds have all contributed to the perception of crypto as a legitimate, professionally governed asset class.
“These types of products and approaches are really creating a new reference point for advisers and trustees on how institutional capital is viewing the opportunity of the asset class more broadly,” Wilks said.
“I think it really provides an opportunity for advisers and trustees to look at where it fits within the broader strategy and realise that volatility is not always a bad thing if you’re allocating across a broader portfolio of assets.”
Bitcoin’s behaviour as a high-beta, tech-like asset class also resonates with SMSF investors seeking exposure to long-term innovation themes. While Wilks stopped short of offering allocation guidance, he notes that most trustees are considering small, strategic weightings rather than large speculative bets.
Understanding the regulatory shift: A more trustworthy environment
One of the most significant signals for advisers is the tightening regulatory framework.
Australia is entering the final stages of the Digital Asset and Tokenised Custody Platforms Bill, expected to go through Parliament next year. The legislation will require exchanges and custodians to hold appropriate licensing, with ASIC as the primary regulator.
“We’re definitely in a transitional phase at the moment, and with the regulatory changes that we’re seeing, that’s really nothing but a positive thing for the industry and investors or potential investors coming into the space,” Wilks said.
CoinSpot has been ahead of the curve, joining AFCA voluntarily in 2018 – years before it became a compulsory requirement. Once the legislation is enacted, all licensed platforms will need AFCA membership and must meet higher standards of compliance, governance, and dispute resolution.
For advisers, Wilks says the day-to-day impact will be minimal but reassuring.
“The practical implications of what that means for advisers and trustees, in actual fact, is quite minimal,” he said.
Key compliance considerations for advisers
Digital assets add an extra layer of SMSF complexity, particularly around audit evidence, segregation of assets, and record-keeping. Wilks outlined some critical critical compliance considerations that include:
Wilks encouraged advisers to engage early and to take advantage of exchange-side support.
Advisers need to upskill – because the client demand is coming
With the rise of digital assets across personal portfolios, SMSF trustees increasingly expect their adviser to understand crypto – even if the adviser ultimately recommends against a large allocation.
Wilks warned that advisers who ignore the asset class may risk losing clients.
“If you’re not upskilling early, then you might be less likely to retain and attract those future clients,” he said.
“There’s a lot to be gained by keeping abreast on news and updates in the space, the different styles of investments that exist, the different investment options for their clients, and making sure that, like any other investment, that you’re abreast of administration and auditing requirements.”
The demographic shift is also accelerating this trend. Younger trustees, particularly those under 50, are driving a surge in new SMSF setups and tend to be more open to digital assets. Many already hold crypto personally and now seek guidance on incorporating it into their long-term retirement strategy.
There are around 10 million Australians who either own or are considering digital assets, Wilks said.
“Some recent studies mentioned around 35 per cent of SMSF investors are stating they are likely to invest in the space. There is certainly some momentum in terms of investors looking to increase their exposure in the asset class.”
However, he also notes that older trustees are increasingly engaging as well. Many have been observing the market for years and are now comfortable enough with the long-term trajectory to add a small allocation.
A sector maturing into the mainstream
The story of SMSFs and digital assets is no longer about speculation. It’s about governance, portfolio construction, and the evolving expectations of trustees who want access to emerging asset classes within a compliant, well-supported environment.
For advisers, the central message is clear: digital assets aren’t going away. Whether clients hold crypto personally, through an ETF, or via an SMSF exchange account, they will increasingly turn to advisers for guidance.
As Wilks put it: “It’s becoming harder to justify not having some level of exposure or understanding, as opposed to justifying a speculative investment, and I think that’s really part of the mindset shift.”
CoinSpot chief business development officer Tim Wilks joins host Keith Ford to break down the rapid rise of digital asset investing within the SMSF sector
