Crypto gains ground with family offices and super investors
As regulation catches up, sophisticated investors are rethinking crypto’s place in the portfolio.
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Australia’s cryptocurrency market, once the domain of tech-savvy millennials and speculators, is increasingly attracting interest from sophisticated investors and family offices.
While retail investors have historically driven the market, large investors are now seeing crypto as a more credible portfolio option, thanks to regulatory progress, new investment vehicles and platforms maturing into full-service financial hubs. That could potentially draw another large segment – superannuation funds – soon.
Vakul Talwar, general manager of Australia at cryptocurrency exchange Crypto.com and its head of product for Trading, says the shift is unmistakable, with Australia emerging as one of the more active markets globally.
“Australia’s got 30% of its consumers invested in crypto. That’s pretty high for a country of over 20 million consumers,” he says.
The approval of Bitcoin exchange-traded funds in the US marked a turning point, giving investors a regulated way to gain exposure without directly holding digital tokens. In Australia, family offices and high-net-worth investors are now exploring the sector more closely, viewing cryptocurrencies increasingly as a diversification tool rather than a speculative trade.
Initially, sophisticated investors allocated to the top five digital coins, including Bitcoin, Ethereum, Solana and XRP. They are now moving beyond simple speculation to yield products that deliver returns like dividends, while placing equal importance on platforms with robust security infrastructure and institutional-grade custody arrangements.
Institutional momentum
The growing institutional confidence is reflected globally. Over 200 companies now hold Bitcoin worth US$86 billion on their balance sheets, while major US brokerages, including Charles Schwab are preparing to offer Bitcoin and Ethereum trading directly to retail clients. Bitcoin ETFs attracted a billion dollars in inflows in just the first few months of 2026.
In Australia too, the market capitalisation for crypto asset ETFs nearly doubled to $434 million in 2025, from $236 million a year earlier.
Regulators are moving to keep pace.
In Australia, the federal government has introduced legislation to Parliament that would bring digital asset providers under the existing Australian Financial Services Licence regime.
“All the crypto exchanges will get up to 18 months to obtain an AFSL from ASIC and transition to the new regime,” Talwar says, noting the draft crypto legislation has cleared the lower house with bi-partisan support.
Clearer rules, he says, will boost confidence among investors and institutions, and could open the door for retirement savings to enter the sector.
Around $3 billion is currently invested in crypto through self-managed super funds, but the process is cumbersome.
Assets must be held separately, structures are complex, and custody requirements create friction.
“Many people are asking the super funds to give them the ability to invest in cryptocurrencies. The younger generation wants a more diversified portfolio and a certain allocation from their super into these different asset classes,” Talwar says.
For exchanges such as Crypto.com, the shift presents an opportunity to expand well beyond trading.
The platform offers eligible users access to over 400 tokens, crypto baskets, staking, yield products and a recently launched IRA-style retirement product (for US users), alongside a Prime program for high-net-worth individuals featuring zero trading fees and up to 6% cash back on its Visa card.
The emphasis, Talwar says, is on a seamless experience underpinned by security and trust: qualities that matter as much to a family office as they do to a first-time buyer.
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