Coinbase is now developing a product to cater to one-time customers, with the goal of attracting and retaining them as traders.
“We don’t view this as cannibalising the ETF players,” Bloomberg was informed by the exchange’s Asia-Pacific Managing Director John O’Loghlen.
The self-managed pensions industry in Australia is Coinbase’s intended market, according to Bloomberg’s interview with Coinbase’s Asia-Pacific Managing Director John O’Loghlen.
It’s not like crypto and the pensions industry or retirees have never been together. Australian self-managed funds have been holding cryptocurrency at a higher percentage since March 2019. The most recent numbers available from the Australian Taxation Office indicate that crypto receives around $664 million, or over A$1 billion.
Compared to December 2019, when it was just $131.5 million (197 million AU), there is a significant growth. According to a March 2023 Reuters article, thousands of Australians have lost millions of dollars after betting on cryptocurrencies with their self-managed pension plans.
O’Loghlen told Bloomberg that self-managed super funds might assign a single investment and then forget about it. To ensure that those customers trade with us and remain loyal, we are developing a product to provide exceptional one-time service.
The recent gains in the cryptocurrency market after spot-ETF authorization in the US and the possibility that Australia may also see similar approvals this year may be propelling crypto interest in the self-managed pensions industry.
Rather than seeing it as a threat to the ETF players, O’Loghlen saw it as a rising wave that may attract participants via a self-managed portal.
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