Aussies flock to crypto and precious metal investments for their SMSFs

Global uncertainty has real impact on Aussie investor planning, with Dacxi observing [410%] increase in tokenised asset uptake amongst its SMSF customers

Global uncertainty, a boom in commodities and fears that inflation could kick into top gear in the near future has forced many Aussies with Self-Managed Super Funds (SMSFs) to look to diversify their investments. Since conflict in Ukraine began, digital wealth platform Dacxi has seen an 410% increase in tokenised precious metal asset purchases, signaling a strong desire from Australian investors for more defensive assets.

This comes as the number of people establishing SMSFs increases, so it’s no surprise that cryptocurrency has grown in popularity as a SMSF investment. Despite a recent warning from ASIC about the risks associated, interest continues to grow.

Dacxi CEO Ian Lowe said: “As with any investment, there are undoubtedly risks involved with setting up a SMSF, but there can be significant returns if done right. When looking to include crypto assets in a SMSF it’s important to recognise that they are an asset class that can add significant diversity to a portfolio, and a fund’s investment strategy needs to show clearly why an SMSF has chosen a particular coin or token. 

“How the SMSF proposes to deal with risks associated with crypto investing should also be covered in the strategy, and when selecting a coin exchange it’s critical to ensure the exchange is based in Australia and complies with Anti-Money Laundering (AML) laws and conducts detailed Know-Your-Client (KYC) verification procedures. The exchange should also be registered with AUSTRAC as a Digital Currency Exchange Provider and provide insurance on the digital assets held in custody.”

Including precious metals as part of an SMSF investment strategy is more straightforward, and commodities continue to rise in value as a hedge against future volatility and inflation.

“In 2021 Dacxi partnered with ABC Bullion to tokenise precious metals for the first time in Australia. We’ve recently seen a significant uptick in SMSFs looking to include both individual tokenised metals like gold and silver, as well as in Dacxi’s precious metals bundle,” Lowe added.

Source: FinTech Australia


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