Bitcoin offers liquid solution against possible tax liabilities
The cryptocurrency is shaping up to be an asset class that could be advantageous to SMSFs in light of the new super tax legislation.
Edward Carroll, head of global markets and corporate finance at MHC Digital Group, said bitcoin has the benefit of being a liquid asset class, meaning investors can use it as an allocation, and then get in and out of it relatively easily to fund any tax liability.
“It actually presents a very attractive asset to allocate, and once you get comfortable with the fundamentals of it, and with the liquidity of it, you actually can both make money and manage your tax liability with an asset class which we believe is going to appreciate significantly over time,” Carroll said.
Carroll continued that bitcoin has reached new record highs, trading through $112,000 on Thursday, with breakout past the $110,000 resistance level driven by strong institutional demand and a bullish market sentiment, underpinning accelerating interest in the asset class.
“Major institutions are steadily increasing their bitcoin exposure, with corporate treasuries showing significant growth in 2025,” he said.
“It is a clear signal of robust institutional confidence - digital assets are becoming a normalised part of diversified portfolios. This milestone reflects the growing conviction in crypto as a long-term, strategic asset class.”
Carroll continued the reason behind the market confidence in bitcoin and crypto over the past few years is because it has established itself as an effective store of value and an alternative allocation to hedge against inflation.
“A lot of the geopolitical risks that we that we've seen in the last 12-24 months, whether that be trade wars, or uncertainty around the global economic environment, constant money printing, and these kind of government induced factors which are having an impact on asset prices, bitcoin serves as a very effective hedge against that,” he said.
“The reason for that is that bitcoin, as an asset class, and by design, has a fixed supply curve, and so we know exactly how much is going to exist. There is a cap on that and what we have seen with the establishment of regulation globally that started last year, is the development of a framework that is now accelerated as a result of the Trump administration.”
He added the Australian government has also shown a lot of support for the sector and for finding a regulatory framework to support allocation to the sector and for broader blockchain use cases.
“As a result, regulation has created a dynamic where real money can now start to allocate to bitcoin with significantly more faith, and as a result, you're seeing significant increase in demand,” he said.
“You also have an asset class with fixed supply and significantly increasing demand because of the regulatory clarity, which means that we think that it has significant upside as an asset within a portfolio, to say nothing of the fact that its characteristics as a sort of standalone asset class.”
About the author
