Coinbase, one of the most popular exchanges for buying and selling cryptocurrencies is teaming up with a company that helps people save for retirement. Now 401(k) plan holders will be able to put up to 5% of their money into crypto assets.
There is almost no crypto in 401(k)s and IRAs. Industry insiders say that the high volatility of the crypto market is why they do not allow it. But some people are trying to change that, but it might take a long time before we know if it will work.
In the market, there is a $22 trillion industry. ForUsAll makes up only 1/20th of that or $1.7 billion. But it can lead other pension providers in coming times because it is able to offer crypto exposure to its clients and the competitors of Fidelity and Schwab cannot do this due to their concern about cryptocurrencies’ volatility.
The WSJ report said that pension funds are having a lot of discussions about investing in crypto. This includes KiwiSaver retirement savings in New Zealand.