Why Australians Are Trimming Crypto Allocations in SMSFs by 4% Despite Market Surges

Self-managed super funds slash crypto exposure right as markets heat up—classic retail timing.

The Great Australian Pullback

SMSF holders cut digital asset allocations by exactly 4% during recent rallies. They're taking profits while markets run hot—because nothing says 'savvy investor' like selling into strength.

Risk Off Down Under

Conservative strategies prevail as trustees rebalance toward traditional assets. Bonds never flash double-digit losses overnight—unless you count government credibility.

Market Psychology at Play

Greed peaks when portfolios turn green. Australians prove even bullish markets trigger profit-taking instincts—especially when retirement funds are on the line.

The Institutional Divide

While retail retreats, whales keep accumulating. Smart money buys when weak hands fold—another chapter in finance's oldest story.

TLDR

• Australians reduced their cryptocurrency holdings in Self-Managed Super Funds by 4% over the past year.
• The total crypto holdings in SMSFs dropped from A$3.119 billion in June 2024 to A$3.018 billion in 2025.
• Despite the decline, crypto holdings in SMSFs have increased by 40% compared to June 2023.
• Younger Australians, particularly those aged 25 to 34, are driving the growth of digital asset investments in SMSFs.
• Global exchanges like Coinbase and OKX are targeting Australia’s growing pension market with SMSF crypto services.

According to new data from the Australian Taxation Office (ATO), Australians have reduced their cryptocurrency holdings in self-managed super funds (SMSFs) by 4%. The total crypto holdings across these funds dropped from A$3.119 billion in June 2024 to A$3.018 billion in 2025. This decrease occurred despite the global cryptocurrency market gaining momentum over the same period.

SMSFs and the Decline in Crypto Holdings

Self-Managed Super Funds (SMSFs) allow Australians to directly control their superannuation investments. This provides them with the flexibility to allocate funds towards various assets, including cryptocurrencies. However, recent ATO data shows that SMSF trustees have reduced their crypto exposure by nearly 4% over the past year.

The total value of crypto holdings in SMSFs stood at A$3.018 billion in June 2025, marking a drop from last year’s A$3.119 billion. Despite this reduction, the current figures still show a significant growth of around 40% compared to June 2023, when SMSF crypto holdings totaled A$2.14 billion.

The decline in crypto holdings comes at a time when the global cryptocurrency market is rebounding. Bitcoin, for instance, saw a 60% increase in value over the same period. This suggests that Australian investors may have taken a more cautious approach amid the market volatility.

Younger Australians Driving Growth in SMSF Crypto

While older Australians have traditionally dominated the SMSF sector, younger investors are now becoming more active. Tech-savvy Australians, especially those aged 25 to 34, are driving the growth of digital asset holdings in SMSFs. According to data from Independent Reserve, over half of Australians in this age group already hold some FORM of cryptocurrency.

Younger investors are reshaping retirement planning by integrating digital assets into their portfolios. This shift is likely to lead to a more significant role for cryptocurrencies in SMSF strategies in the future. As these younger generations continue to engage with crypto, the total crypto holdings in SMSFs could rise substantially in the coming years.

Global Crypto Trends Influence Australian SMSF Market

The Australian SMSF market is not isolated from global trends. Major international exchanges, such as Coinbase and OKX, are now targeting Australia’s growing pension market. Both companies have launched services tailored for SMSF investors looking to include crypto in their retirement portfolios.

OKX has been offering SMSF onboarding services since June, and demand has exceeded expectations. Coinbase, which has yet to launch its SMSF-specific services, already has over 500 investors on its waitlist. This growing demand reflects a broader global trend in which cryptocurrencies are increasingly becoming part of mainstream retirement strategies.

In the United States, cryptocurrencies are now included in 401(k) retirement plans, signaling a similar shift in other markets. In the UK, a recent survey found that 27% of adults are open to including crypto in their retirement portfolios. Additionally, a survey in India revealed that 45% of retirees have invested in cryptocurrencies.