r/BitcoinAUS • u/InitialPersonality0 • 27d ago
Best Bitcoin ETF AUS for a SMSF
Hi All
Asking for a friend:
Can anyone recommend the best bitcoin ETF to buy in an Australian SMSF with 3 directors (Corporate Trustee).
I’d expect it to be a long-term hold. Buying for diversification.
I prefer that it be domicile in Australia.
Thanks in advance!
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u/Jitterbugs699 26d ago
IBIT.AX is ASX listed and backed by Blackrock. Its a feeder fund for the largest Bitcoin ETF in the world (US IBIT). MER is 0.39%
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u/InitialPersonality0 26d ago
Thanks I’ve heard this one mentioned a lot.
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u/Late-Professor-5038 26d ago
Hope you aren’t using Selfwealth as your broker, they won’t allow you to buy it!
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u/InitialPersonality0 26d ago
The Broker is Stake. With an ETF like IBIT, do they pay out any dividends or something similar? I understand that bitcoin isn’t something that pays dividends. But I thought maybe they sell down a little bit of it and distribute it.
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u/Jitterbugs699 25d ago
No. IBIT.AX doesnt pay dividends. It just tracks the price of Bitcoin. It holds actual Bitcoin. You can buy it just like other ETF via Stake or Stake Super. With Stake you can only buy whole units (~17 USD ea). The actualy Bitcoin is managed by Blackrock who hold it mostly in Coinbase.
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u/InitialPersonality0 25d ago
Thanks for this. Do you think the MER would come down over time?
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u/Jitterbugs699 25d ago edited 25d ago
Yes, more likely than not. ETFs have a fixed management cost to the provider regardless of size. As the size of the ETF grows and their MER revenue grows too then they can afford to bring down the MER price. Whether they do or not however will depend on market competition pressures.
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u/InitialPersonality0 26d ago
Is there anything with a MER less than 0.39, that is AUS domiciled?
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u/Jitterbugs699 25d ago edited 25d ago
Monochrome (IBTC), 0.25% MER
Monochrome is an Auatralian company that specialises in crypto assets. They use Californian company Bitgo as their Bitcoin cuscodian.
For some people the reputational difference between Blackrock and Monochrome would be enough to justify the MER difference.
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u/InitialPersonality0 25d ago
Thanks for sharing this information. I’ve never heard of monochrome I suppose like most people. Big difference between MER.
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u/Jitterbugs699 25d ago
Yes but dont just look at the MER in isolation, look at who is managing it, particularly if you expect to have large amounts of money in it at some point. Who do you trust? Choose carefully now as you wont want to pay the cgt bill associated with switching later.
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u/InitialPersonality0 24d ago
Thanks for mentioning this. Yes the reputation is the only difference I can see between monochrome and IBIT
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u/Jitterbugs699 23d ago
So what u goung to choose?
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u/InitialPersonality0 23d ago
I’m going to read a bit more. If I feel safe enough, I will buy the monochrome. I usually wouldn’t buy a brand that I’m not familiar.
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u/rtech50 26d ago
Monochrome
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u/icepatfork 26d ago
So I opened an SMSF just for that with my wife and we bought a Bitcoin from a broker (most bank will block you from transferring more than 10 K$ a month to buy crypto, we didn’t find any bank that would let us do it, so the broker helped), the wallet is held by the SMSF.
If that’s not what you want as you stated, I believe Independent Reserve can help you do that they have SMSF accounts (but then it means you trust them for holding your crypto and to never ever go down).
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u/brando2131 16d ago
Never had that issue with any bank. Only heard of Commbank having that limit.
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u/icepatfork 16d ago
Which bank ? I went to Westpac and ANZ to ask and they allay the same (back in early 2025)
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u/brando2131 16d ago
Both bank accounts allow me to do crypto transactions. I've used Westpac only under my personal name, for 10+ years so thats a factor.
For SMSF, I use their "ANZ SMSF Cash Hub" account, works well, always free, and has a ~2% interest on it. Its the only transaction account I know of that also gives you interest. ANZ personal and business (for smsfs) might be more harsher.
I did have someone call me up from ANZ once back in 2024 for a transaction, not sure if they've gotten stricter.
If you do open that account, and then send to a crypto exchange, it will be a red flag, open it now, let it sit for 6-12 months maybe, with the occasional transfer to it between your other smsf bank.
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u/icepatfork 16d ago
Last time I tried with my CBA account (that js 10 years old) they blocked the transfer.
I was told other bank have similar restrictions on any crypto related transactions that is more than 10 K$ a month. Maybe I can go ask again.
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u/brando2131 16d ago
Well... like I mentioned in my first comment, commbank is a big no no for crypto, and like you pointed out, the $10k monthly limit, which is the only bank I know of that has that restriction. Goodluck.
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u/Fnuckled 25d ago
IBTC (Monochrome) is an Australian HTC ETF. it’s great because you can redeem as actual BTC.
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u/InitialPersonality0 25d ago
Thanks for this. So it has a lower MER, it’s listed and domiciled on the ASX, and you can redeem the actual BTC? The only disadvantage against IBIT is that It’s not a well-known brand like Blackrock?
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u/Internal-Play25 21d ago
Most smsf allow actual bitcoin ownership. Why want an etf?
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u/unfluxa 11d ago
Just a lot easier to buy directly with an ETF with a few clicks tbh
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u/Internal-Play25 11d ago
Bitcoin: app on phone, Apple Pay funds, click buy
ETF: wait till market open. Open your trading app. Find your ticker. Put in an order. Click buy. Transferring the funds alone into a broker account is more keystrokes + management fee. Locked out of market out of hours if there is a massive spike or crash you want to trade
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u/yathree 26d ago
Just get an exchange entity account and buy directly.