Coinbase to Target Australia’s Self-Managed Pension Funds: Bloomberg

As an analyst with extensive experience in the crypto and pensions sectors, I believe that Coinbase’s entry into Australia’s self-managed pension sector is a strategic move that could potentially disrupt the current landscape. Self-managed super funds (SMSF) have shown a growing interest in cryptocurrencies since 2019, with nearly A$1 billion allocated to crypto as of March 2023. However, this interest comes with significant risks, as many Australians have lost millions of dollars through SMSF investments in crypto.

As a crypto investor with an interest in the Australian market, I’m excited to hear about Coinbase’s plans to cater to the self-managed pension sector Down Under. According to their Asia-Pacific Managing Director, John O’Loghlen, they are working on a new service tailored for this specific market segment (Bloomberg).

The connection between cryptocurrencies and the pensions sector, particularly for retirees, is nothing new. Self-managed funds in Australia have seen a significant rise in crypto investments since March 2019. As per the Australian Taxation Office’s most recent figures, approximately A$1 billion ($664 million) is now allocated to cryptocurrencies – a substantial jump from the $131.5 million ($197 million AU) recorded in December 2019. Regrettably, Reuters reported in March 2023 that thousands of Australians who utilized self-managed pension funds for crypto investments suffered significant losses.

As a researcher studying self-managed super funds, I’ve noticed that some individuals prefer to make only one investment allocation and then leave it untouched. However, our team is developing a solution specifically catering to these clients. We aim to provide them with an excellent one-time trading experience and encourage long-term partnerships.

Coinbase did not immediately respond to CoinDesk’s request for comment.

As a researcher studying the intersection of cryptocurrencies and self-managed pensions, I’ve noticed a growing interest in this area. This surge in interest may be due to the recent positive developments in the crypto sector, such as the approval of spot Bitcoin ETFs in the United States. These approvals have given the crypto market a significant boost, increasing investor confidence and attracting more institutional investors. Additionally, there’s a strong possibility that Australia will follow suit and approve similar products this year. As a result, self-managed pension fund managers may be exploring cryptocurrencies as an alternative investment option to diversify their portfolios and potentially reap higher returns.

“O’Loghlen expressed that we view this not as competing with ETFs, but rather as expanding the market and attracting sufficient demand for an individual to enter via their personal self-managed platform.”