SMSF | Vergo Strategy

SMSF Bitcoin Investment

How to Invest in Bitcoin with Your Superannuation

As Bitcoin adoption grows, more of our clients are exploring ways to integrate it into their portfolios. A popular option is setting up a **Self-Managed Superannuation Fund (SMSF)**, which allows for Bitcoin investments.

Though the process of establishing and managing an SMSF for Bitcoin investment might seem complex and costly, it is often simpler and more affordable than expected. This article provides a straightforward “Bitcoin SMSF guide” explaining what an SMSF is and how to create one for Bitcoin investments.

What is a Self-Managed Superannuation Fund (SMSF)?

An SMSF is a private super fund that you manage yourself, unlike retail or industry super funds. By setting up your own SMSF, you take control of your superannuation, choosing where your money is invested and selecting your preferred insurance options.

How to Set Up and Operate an SMSF

1. Select an SMSF Administrator
An SMSF Administrator is an accountant or an organization specializing in SMSF setup and management. We recommend services like SMSFWarehouse based on our clients’ experiences.

2. Establish Your Fund
Your SMSF Administrator will gather key information, such as trustee details (name, date of birth, address, tax file number), and guide you through the documentation needed to establish your SMSF, including a fund deed, trustee appointments, and an investment strategy.

3. Open a Bank Account for Your SMSF
Once your SMSF is set up, you’ll need to open a dedicated bank account. Most banks offer SMSF accounts, and some of our clients prefer Ing / St. George.

4. Set Up an SMSF Vergo Strategy Exchange Account
Next, open a Vergo Strategy exchange account dedicated to your SMSF. Contact us at [email protected], and we’ll guide you through this simple process.

5. Transfer Existing Superannuation or Make New Contributions
You can roll over existing super funds into your SMSF or make new cash contributions by contacting your current super fund or consulting your SMSF Administrator for guidance.

6. Secure Your SMSF Bitcoin
Develop a plan to securely store your SMSF Bitcoin. Ensure SMSF assets are separate from personal assets, and all purchases related to security, such as hardware wallets, are made with funds from your SMSF.

7. Purchase Bitcoin Using Your SMSF
Deposit AUD into any crypto exchange you wish, We recommend Kraken Pro / Bitaroo.

8. Withdraw Bitcoin to Your SMSF Wallet
After purchasing Bitcoin, transfer it to your secure SMSF wallet, following the security measures you’ve planned.

How Long Does It Take?

Most steps are completed online, taking 20-60 minutes per step. The entire process should take about a month from start to finish.

What is the Sole Purpose Test?

Australian SMSFs must meet the sole purpose test, ensuring assets are used only for the SMSF’s benefit. This means keeping SMSF assets, like Bitcoin, separate from personal assets and accounts.

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