SMSF adoption of crypto is set to increase

SMSF adoption of crypto is expected to increase in the coming years due to a convergence of demographic, behavioural and structural shifts, a crypto expert said.

Justin Arzadon, director of adviser services at Betashares, said the uptake of crypto currencies is due to several factors, the first of which is the growing appetite of SMSF trustees for non-traditional assets.

“Portfolios are diversifying beyond shares and property into alternatives that offer different risk and return profiles. Measured allocations to crypto are increasingly viewed within this broader diversification framework,” Arzadon said.

“Second, the demographic makeup of SMSF trustees is changing. Younger trustees, including Millennials and Gen Z, now represent a growing share of new SMSFs. These investors are generally more familiar with digital assets and more comfortable considering small allocations as part of long-term investment strategies.”

Additionally, Arzadon said measured allocations to crypto are increasingly being seen within the lens of disciplined portfolio construction. 

“Crucially, the emergence of crypto ETFs has opened the asset class to a wider range of investors,” he said.

“ETFs lower barriers by providing regulated, transparent, and operationally simple access, making crypto exposure more compatible with SMSF governance and compliance requirements.”

Vakul Talwar, general manager for Australia at Crypto.com, said it is shaping up to be an important year for Australia’s cryptocurrency industry and there are three growth tailwinds for the broader industry that will encourage greater adoption amongst SMSF owners in 2026.

“The first tailwind is regulation, as with government legislation now on the floor of Parliament for the first time, investor confidence is rapidly increasing,” Talwar said.

“By regulating the sector, the government is providing clear frameworks and guardrails for businesses to operate in, which will result in greater protections for investors who wish to allocate to crypto.”

He added that this will provide greater assurance to investors that their money is held safely and managed appropriately, which acts as a catalyst for many SMSFs to allocate to the asset class for the first time.

“The second tailwind is the fact that there has been an increasing number of new crypto products brought to market over the past 12 to 18 months, particularly ETFs with crypto assets and we expect this to continue in 2026,” Talwar said.

“These new products are making it easier for people to access crypto, through regulated products, which also assists in improving investor sentiment around crypto.”

Talwar continued that the market cap for crypto ETFs almost doubled last year, reaching $434 million in 2025, up from $236 million in 2024. Additionally, on the global front, US crypto asset ETFs also rose to a market cap of $1.28 billion in 2025, up from $685 million in 2024.

“These numbers will increase significantly with Australia’s first crypto legislation likely to pass through Parliament by mid-2026 and with more SMSFs and larger wholesale and institutional investors expected to commit significant capital to crypto,” he added. 

Finally, Talwar said crypto is continuing to make strong progress in becoming a mainstream asset class.

“In 2025, we saw a clear shift in the mindset of investors, crypto is no longer a speculative side bet, it’s an established component of a diversified portfolio and with regulatory clarity expected this year, this momentum will continue,” he said.

“Crypto is playing an increasing role in a diversified portfolio amongst traditional asset classes and SMSF owners are recognising this.”

Mandy Jiang, CFO and executive director at CloudTech Group, added that SMSFs will be one of the key investor audiences increasingly looking to allocate capital towards crypto. 

“This growth is supported by regulation, innovation that is making it easier for people to access the asset class and greater interest from institutional investors, all of which create a major shift in how SMSFs are approaching digital assets,” she said.

“While SMSFs have historically been early adopters of alternative investment themes, the next 12 months are set to deliver the clarity and confidence needed for crypto to mature from a niche allocation into a core part of a portfolio.”

She added that for SMSF trustees, who operate in one of the most compliance‑sensitive corners of the financial system, regulation is not a barrier but an enabler and the new regime for Digital Asset Platforms (DAPs) and Tokenised Custody Platforms (TCPs) finally sets consistent standards around custody, execution, disclosure and operational safeguards. 

“This clarity gives accountants, auditors and advisers the confidence they need to approve crypto allocations, helping to remove one of the biggest practical hurdles for trustees looking to diversify their portfolios,” she said. 

“It’s also becoming easier for SMSFs to allocate capital, with tokenised investment products emerging as a new access point to digital assets. Tokenised funds which represent traditional assets like private credit or government bonds on blockchain rails, offer faster settlement, fractional access and improved transparency.”

She continued that for SMSFs, which often seek exposure to income‑generating alternatives but face high minimums and liquidity constraints, tokenisation opens the door to a broader universe of assets. 

“By enabling fractional ownership in areas traditionally limited to institutional investors, tokenised products provide SMSF trustees with institutional‑grade opportunities at retail scale,” she said.

“Perhaps most importantly, institutional and wholesale interest in digital assets accelerated through 2025 and is expected to increase in 2026. As large asset managers, family offices and superannuation providers deepen their exposure, market credibility is rising. Higher trading volumes, increased liquidity and more sophisticated product structures create a more stable ecosystem for SMSFs to participate in.”

Keeli Cambourne

February 13 2026

smsfadviser.com