By self-managing pension funds, cryptocurrency is flowing into Australia's $4.3 trillion savings pool.

Australia's retirement fund system, with a scale of 4.3 trillion Australian dollars (approximately 2.8 trillion US dollars), which has long been regarded as one of the most well-regulated savings pools in the world, is now becoming a new frontier for the entry of cryptocurrencies. The two major global digital asset trading platforms, Coinbase Global Inc. (COIN.US) and OKX, have successively launched products targeting retirement fund investments in cryptocurrencies, marking the further infiltration of digital assets into the mainstream financial system. Initially, the focus is on Self-Managed Super Funds (SMSFs) - these funds, which are independently managed by investors, currently account for a quarter of the Australian retirement fund market share. Unlike mainstream retirement funds that generally avoid cryptocurrency assets, SMSFs give individuals full investment autonomy. Fabian Bussoletti, Technical Manager of the SMSF Association, stated: "The focus on cryptocurrency in the SMSF sector is increasing first, and this phenomenon is logical. In time, larger funds may also follow suit." According to John OLoghlen, Managing Director of Asia Pacific at Coinbase, the company's dedicated SMSF service is already in the final stages of development, with a waiting list of over 500 people. Kate Cooper, CEO of OKX Australia, stated that OKX launched a similar product in June this year, with market demand exceeding expectations. Data from the Australian Taxation Office shows that the scale of cryptocurrency assets held by SMSFs is still relatively small (around 1.7 billion Australian dollars as of March), but has increased sevenfold since 2021. Both exchanges are optimistic that this growth trend will accelerate, forcing regulatory agencies and institutional funds to face the cryptocurrency exposure issue that they have been avoiding. Currently, AMP is the only mainstream retirement fund institution in Australia that publicly discloses investments in cryptocurrency assets. In addition, the existing products of OKX and the services planned to be launched by Coinbase will also assist investors in setting up SMSFs through third-party institutions such as accounting firms and law firms. Although there is no minimum balance requirement, the ongoing management costs (including mandatory independent audits) mean that this scheme is usually only suitable for accounts of larger scale. OLoghlen pointed out: "This product is more suitable for long-term investors rather than high-frequency traders." Coinbase announced its plans to target the SMSF market as early as last year, with official launch of related services expected in the coming months. The company revealed that a survey of users on the waiting list showed that 80% of respondents plan to establish new SMSFs, with 77% intending to invest up to 100,000 Australian dollars in digital assets. OLoghlen stated that there are significant differences in demand for cryptocurrencies among different generations. The "baby boomer" generation (usually driven by their children's desire to access cryptocurrency) is incorporating cryptocurrency into existing accounts; while young investors are opening SMSFs earlier than before and are significantly more inclined to allocate digital assets. Bitcoin prices have surged by nearly 20% since the beginning of this year and hit a new all-time high last month - prior to the US President Trump signing an executive order loosening restrictions on retirement funds investing in cryptocurrencies. Australia may become a "testing ground" to determine whether digital assets can transition from fringe investment to mainstream retirement fund allocations, but this is contingent on overcoming deep-rooted regulatory concerns. Currently, Australian regulatory agencies such as the Australian Securities and Investments Commission (ASIC), the Australian Prudential Regulation Authority, the Australian Taxation Office, and the Reserve Bank of Australia are all cautious about cryptocurrency investments. A spokesperson for ASIC stated in an email declaration regarding cryptocurrencies: "These products have extremely high volatility, and overexposure can lead to significant losses." The organization also advises consumers to seek professional advice from accountants or financial advisors before setting up an SMSF. Last month, the Australian financial crime regulator raised concerns about money laundering and terrorism financing, requiring the Australian branch of Binance to hire an external audit firm. The cryptocurrency industry worldwide is also subject to strict regulatory scrutiny: in February this year, OKX agreed to pay a $5 billion fine in the US for conducting trading operations without a license; while Coinbase was fined in the UK last year for providing services to high-risk clients. A spokesperson for the Australian Taxation Office emphasized in a statement: "We remind those considering setting up an SMSF that the core goal of the pension system is to preserve and increase the value, ultimately providing the income needed for a decent retirement life."