digital asset
March 21, 2024
3 min read

Enhancing the risk adjusted returns of your Self-Managed Superannuation Fund with Bitcoin

The Gold coin stack  chart for business idea concept image

In the dynamic landscape of financial markets, Bitcoin, once considered a speculative asset, is now emerging as a cornerstone in diversified investment portfolios and within Self-Managed Superannuation Funds (SMSFs), especially as Bitcoin ETFs emerge.

This blog post looks into the benefits of including Bitcoin in your SMSF and how DigitalX is primed to facilitate simpler, lower cost access to this burgeoning asset class.


Outperformance of Traditional Allocations

Traditional investment wisdom often advocates for a balanced allocation between equities and bonds, typically in a 60:40 ratio. However, recent data reveals that investment portfolios incorporating an allocation to Bitcoin consistently outperform these conventional allocations. This shift underscores the importance of diversification and the role of Bitcoin as a strategic asset, within a well-rounded investment strategy.


Exceptional Returns

As the highest returning asset class of the past decade, Bitcoin has delivered unparalleled gains, outshining traditional asset classes by a wide margin. While Bitcoin’s price volatility may give some investors pause, a deeper analysis reveals that the upside significantly outweighs the downside over multi-year holdings. For SMSF holders seeking to enhance risk-adjusted long-term returns, Bitcoin presents an opportunity to outperform traditional portfolios.


Institutional Validation

The growing institutional adoption of Bitcoin underscores its legitimacy as a viable asset class. Wall Street managers launching ETFs and allocating significant resources to Bitcoin further validate its status as a credible investment vehicle. This institutional stamp of approval not only bolsters confidence but also paves the way for broader adoption among SMSF trustees.


Easier Access and Lower Risk

If DigitalX’s application for a spot Bitcoin ETF is approved by the ASX, this will herald a new era of accessibility and reduced risk for SMSF investors. By offering simplified, cost-effective exposure to Bitcoin returns, DigitalX empowers investors to harness the potential of this asset class without the complexities associated with direct purchases or offshore ETFs.


Proven Track Record

With an eight-year track record in managing digital assets, DigitalX boasts a legacy of excellence in navigating the intricacies of cryptocurrency markets. DigitalX’s existing digital asset funds, ranked #1 and #3 by Morningstar, evidences our commitment to delivering superior returns and expertise in digital assets for Australian investors.

In conclusion, the inclusion of Bitcoin in your SMSF represents a strategic opportunity for investors seeking to diversify their portfolios and maximise long-term returns. If approved, the DigitalX’s Australian-issued and regulated Spot Bitcoin ETF could help democratise access to this transformative asset class, ushering in a new era of financial empowerment and opportunity for SMSF trustees across Australia.

As the financial landscape continues to evolve, DigitalX remains steadfast in its mission to empower investors with innovative solutions and unparalleled expertise in the digital asset space.

  • digital asset

Know what’s next. Ask us anything.