Digital assets drive record growth in Australian SMSFs

New research commissioned by OKX Australia found digital assets are influencing the creation of self-managed superannuation funds in Australia, as the SMSF sector records its strongest annual growth on record.

Australia's SMSF sector added 33,224 net new funds in 2024-25, up 91% from the previous year. The study, based on a survey of 808 Australian investors conducted by CoreData, suggests digital assets are a material factor in that increase rather than a niche consideration.

Among trustees who already hold cryptocurrency in their SMSF, 46% said the ability to invest in digital assets was a key reason for setting up the fund. More than a third established their SMSF after making their first digital asset purchase, while one in five did so in the same year as that purchase.

The figures indicate that a younger investor base is playing an outsized role in fund creation. Australians under 45 accounted for 45% of all new SMSFs created over the past five years, despite making up only 15% of the existing trustee population.

Digital asset holdings in SMSFs have risen to AUD $3.2 billion from AUD $240 million four years earlier. The number of SMSFs holding digital assets has grown 333% over five years, making it the fastest-growing asset class tracked by the Australian Taxation Office in the SMSF system.

Allocation trends

The research suggests many trustees are taking large positions rather than maintaining limited exposure. Among SMSFs that hold digital assets, 47% allocate more than half of their funds to the asset class, and 28% allocate more than 90%.

The median allocation to digital assets was AUD $80,966, higher than the median allocation to overseas shares and unlisted equities.

The study identified two broad groups behind the increase in SMSF creation: established investors with larger balances seeking greater control over retirement savings, and a younger cohort with a strong interest in digital assets and limited access to them through traditional super funds.

There was also a clear age split in attitudes. Among SMSF trustees under 40, 66% said they trust digital assets as an investment, compared with 36% of those aged 40 and over.

Interest was also strong among younger trustees who do not yet hold digital assets. Four in five SMSF trustees under 40 without current exposure said they would consider investing in the asset class through their fund.

The report placed those findings in a broader demographic context. Australians under 50 are expected to receive about AUD $2.3 trillion through intergenerational wealth transfer by 2040, underscoring the significance of changes in how younger investors approach retirement savings.

Advice gap

The research also highlighted gaps in advice and compliance support. Nearly half (46%) of crypto-holding SMSF trustees reported difficulty meeting Australian Taxation Office compliance requirements.

At the same time, only one in ten financial advisers has digital assets on their Approved Product List. As a result, advisers may be involved in SMSF relationships but unable to give formal guidance on an asset class that some clients are actively buying.

The study found a correlation between adviser involvement and stronger reported outcomes. Trustees with advice who held digital assets reported a confidence score of 6.0 out of 7.0, compared with 5.3 for those without advice, and a median return of 25% versus 20%.

A quarter of trustees who are currently unlikely to invest in digital assets said that an adviser's recommendation would change their minds. That suggests advice restrictions may be shaping demand as well as limiting support for existing investors.

OKX Australia Chief Executive Officer Kate Cooper said the trend went beyond short-term market interest.

"Australians are voting with their super and they're not waiting for managed funds to catch up - they're establishing their own structures to access the asset classes they have conviction in. The data suggests this is a structural shift, not just a cycle. SMSF growth reached its highest level on record in 2024-25, under-45s are its fastest-growing cohort, and digital assets appear to be an important catalyst. The financial services industry is largely watching from the sidelines," Cooper said.

Cooper also pointed to the role of formal financial advice in investor outcomes.

"The data suggests that advice may make a real difference to outcomes for trustees holding digital assets. But fewer than one in ten advisers can formally address this asset class with their clients.

That's a structural gap the industry needs to close - both for the sake of trustees navigating a complex asset class, and for the advice profession's relevance to a fast-growing segment of the SMSF market," she said.