Direct Cryptocurrency and crypto ETFs offer different paths to digital asset exposure for an Australian SMSF. The choice is rarely about which option is better in the abstract; it is about which option fits the fund’s strategy, members and operational capacity.

This article compares SMSF direct crypto and crypto ETFs across the dimensions trustees most often care about.

Ownership and Custody

Direct crypto puts the SMSF in possession of wallets and keys. The fund owns the underlying asset on the blockchain. ETFs put the SMSF in possession of units of a managed fund; the Fund Manager handles custody.

Operational Burden

Direct crypto requires the trustees to manage wallets, exchange accounts,…