Invest in cryptocurrency
with your super

An SMSF needs its own bank account.
If you want your SMSF to invest in crypto, the bank account must support this and not block transfers to your chosen cryptocurrency exchange.

Grow enables you to choose the ANZ V2 PLUS cash account for the following reasons:

• No account-keeping fees;
• Assisted account setup via Grow;
• Online access;
• Data feeds and read-only accountant access;
• Australian-based customer service;
• Accepted by all industry and retail super funds for electronic transfers via SuperStream;
• Government Guaranteed up to $250,000.

It is important to note that using the ANZ V2 PLUS cash account to use Grow SMSF’s services is not compulsory. We will only provide you with information on the ANZ V2 PLUS cash account and assist you with the administrative aspects of setting up the account based on your instructions. Please refer to our Advice Disclaimer for further information.

Learn and compare SMSF bank account options here: Account Comparison

Yes. One of the most fundamental principles of a self-managed super fund is the separation of assets.

A separate cryptocurrency exchange account is needed in the name of the SMSF. Separation of assets means that the assets, accounts, and investments of an SMSF must be in the name of the trustee of the fund on behalf of the SMSF and cannot be mixed or intertwined with the assets and investments of the members or trustees of the fund.

If a trustee fails to keep assets of an SMSF separate, the breach of the regulations must be reported to the ATO by the independent auditor of the fund.  The trustee(s) could be personally fined, or in extreme cases, the ATO may deem the fund non-compliant

The following is direct from the ATO, who regulate SMSFs and enforces the rules when it comes to diversification:

“While a trustee can choose to invest all their retirement savings in one asset or asset class, certain risks such as return, volatility and liquidity risks can be minimised if a trustee chooses to invest in a variety of assets. This is called a diversified portfolio, which helps to spread investment risk.”

Regardless of your opinion on cryptocurrency as an investment, it is still a relatively new and emerging asset class that exhibits high volatility. With Grow, we support not just cryptocurrency SMSF investments, but also ASX shares and ETFs, as well as US stocks and ETFs. This enables SMSF trustees to put together a well-diversified investment portfolio and ensure they meet the diversification requirements.

Can an SMSF be invested 100% in cryptocurrency assets?
No one can stop an SMSF trustee from investing a large portion of the funds portfolio into crypto (or any asset class), however the onus is on them to validate why the lack of diversification (and the high level of risk) is appropriate for their fund.

Yes, as part of Grow’s SMSF accounting services, we track all crypto transactions and calculate capital gains and losses.

In most situations, there is no requirement to use third-party reporting tools; however, you’re free to do so if you believe you’ll benefit from additional reporting.

Our services cater to SMSF investors who wish to buy, hold, and occasionally trade cryptocurrency via our approved Australian-based exchanges. We do not support DeFi platforms or any non-Australian platforms because they don’t recognise SMSF account types, which creates compliance issues for an SMSF attempting to use them.

From an audit perspective, independent SMSF auditors will not rely on reports from third-party reporting tools, such as Koinly, Syla, or Crypto Tax Calculator. Their auditing standards require them to verify holdings and transactions directly from the source, meaning they will use blockchain explorers and reports from approved exchanges.

The set-up fees for a new SMSF are as follows:

• $1495 with a company trustee;
• $880 with individual trustees.

Grow SMSF intentionally DOES NOT offer ‘FREE’ SMSF establishment to ensure we provide you with the best possible upfront support and service you deserve. You can set up a new SMSF with Grow here: Set up an SMSF

There are a number of differences if you were to compare Grow SMSF to many of the low cost online only service providers available.  We recommend anyone comparing SMSF service providers look at the following as part of their research:

1. Service: We provide personalised phone and email support.  You are not forced to make all communication via an online portal. Our phone number (1300 651 263) is readily available during business hours (AEST). Check to see whether other providers have a phone number you can call to speak to a human.
2. Transparency: Where Grow SMSF receives commission or referral fees we will disclose them and where possible rebate them to your cryptocurrency SMSF or use the commission received to reduce your SMSF fees.. Some other SMSF service providers receive commissions which increase the ongoing costs of using their preferred suppliers.  Check the Product Disclosure Statement (PDS) of those providers to see how much they receive in commissions.
3. Work Required from you: Some providers are not ‘full service’ SMSF administration providers – they could better be described as an online accounting system with an SMSF audit and lodgement function attached.  Grow SMSF does not require you to categorise or code any of your SMSF transactions yourself.

The above is not a comprehensive list. Take a look at our blog to find more specific information on comparing Grow SMSF to other service providers.

As soon as cryptocurrency SMSF assets are transferred off the exchange to an external wallet (including a cold-storage wallet), tracking and reporting become more cumbersome and manual.

Additionally, when SMSF crypto assets are held under an external wallet address, extra audit work and declarations are required to confirm that the beneficial ownership of those assets is with the SMSF. For clarity, Grow will levy an additional annual fee of $220 per external wallet to compensate for the extra manual work required.

External wallets are supported across ALL PACKAGES, including Starter, Flexi and BESPOKE.