Strong growth of crypto in SMSFs
Cryptocurrency holdings in self-managed super funds (SMSFs) have gone up by 74% in one year on BTC Markets’ exchange, with the largest client inflows coming from those aged 45-59 years old which rose 79% year on year.
BTCM’s Investor Study Report 2021 analysed data on its exchange for calendar year 2021, breaking down demographics (age, gender, investor type) to explore the investment behaviours of its 325,000 clients.
BTC Markets chief executive, Caroline Bowler, said growth from what it referred to as ‘mature wealth accumulators’, was encouraging due to the measured risk appetite of this age group as they approached retirement.
“They bring a wealth of experience in traditional investment markets and their decision to invest in crypto is not driven by the fear of missing out (FOMO) but on strategic research and information,” she said.
Average portfolio sizes continued to remain highest for the 60-plus year-old demographic due to higher disposable income and comfort levels in leaving their crypto on the exchange.
Overall, the report showed a spike in the average value and volume of trades executed on the exchange by 48% and 118% respectively.
SMSFs were among the fastest-growing investment segments, with sole traders jumping by 196% and companies by 79%.
The size of the SMSF investment also saw a 15% increase with initial deposits now in the hundreds of thousands compared to earlier investments in the tens of thousands, whereas companies saw an increase in the average portfolio sizes of 61%.
“This increased commitment from SMSF investors, with their lengthier investment outlook, illustrates a long-term bullish point of view,” Bowler said.
Anecdotally, BTCM said it found an established pattern for new account openings that started with individuals, then their partners, their SMSF and then their company, as they got more comfortable with the asset.
“Institutional investors and superannuation funds are now in a similar position to where the banks were, and it can only be a matter of time before market developments give them the confidence to embrace crypto," Bowler said.
AUTHOR
Liam Cormican
Recommended for you
Amid a growing appetite for alternatives, investment executives have shared questions advisers should consider when selecting a private markets product compared to their listed counterparts.
Chief executive Maria Lykouras is set to exit JBWere as the bank confirms it is “evolving” its operations for high-net-worth clients.
Bennelong Funds Management chief executive John Burke has told Money Management that the firm is seeking to invest in boutiques in two specific asset classes as it identifies gaps in its product range.
Responsible investment performance concerns have lessened as the market hits $1.6 trillion in AUM, according to RIAA’s annual report, but greenwashing fears among asset managers are on the rise.
