Bitcoin and crypto go mainstream with new 401(k) retirement offering
Some 401(k) savers soon can plunk a portion of their nest eggs into cryptocurrency.
Starting in July, ForUsAll Inc., a 401(k) provider, will let workers in retirement plans it administers to invest up to 5% of their contributions in the leading cryptocurrencies through Coinbase. The news was first reported by the Wall Street Journal.
"When we created our institutional platform, our initial focus was making cryptocurrency accessible to institutional investors and high net worth individuals,” Brett Tejpaul, head of institutional sales, trading, and prime at Coinbase, said in a statement to Yahoo Money. “The next evolution is to broaden our reach and we are thrilled to be working with ForUsAll to expand access to cryptocurrency through 401(k)s.”
This is only the beginning of mainstream crypto investment as a retirement strategy, according to David Ramirez, co-founder and chief investment officer of ForUsAll.
“There has been an absolute sea change in the investment world in the last few years with institutional professional investors making increasing use of alternatives, and more recently digital assets,” Ramirez told Yahoo Money. “Most individual investors don't have access to the same opportunities, nor the means to make good use of them. We're changing that.”
It may be too early to tell whether this is an industry-wide turning point or one-off phenomenon. ForUsAll manages 401(k) plans for just 400 employer clients, representing $1.7 billion in retirement-plan assets. That’s a small slice of the $22 trillion market.
https://money.yahoo.com/bitcoin-crypto-investing-goes-mainstream-in-new-401-k-offering-214411478.html
