The ATO has warned SMSFs to ensure appropriate independent advice is sought before investing in cryptocurrencies as such investments could add to the compliance burden of the fund.

A hedge fund industry veteran has partnered with ANZ’s former head of global markets to launch Australia’s first cryptocurrency-focused managed fund, which will give sophisticated investors exposure to emerging digital currencies with the potential for a 30 per cent annual return.

The use of bitcoin may be a return to the gold standard, but while early investors in the cryptocurrency may initially be optimistic following rising prices, they need to be aware of the pitfalls, ETF Securities has warned.