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News

Bitcoin ETF Storm Threatens Your 401(k) Savings Scheme!

December 26, 2023 - Around 2 mins mins to read

Key Points:

  • U.S. regulators may approve a spot Bitcoin ETF by Jan. 10, opening crypto to retirement savers.
  • 10+ major asset managers, including BlackRock, are vying for approval.
  • Predicted mainstream adoption: Fidelity already offers a Bitcoin fund in 401(k) plans.
Retirement savers seeking exposure to Bitcoin ETF without direct ownership might soon witness a breakthrough.
Bitcoin ETF Storm Threatens Your 401(k) Savings Scheme!

As the January 10 deadline approaches for U.S. regulators to greenlight a spot Bitcoin exchange-traded fund (ETF), anticipation grows within the industry. Over 10 asset managers, including BlackRock, are vying for approval, signaling a potential shift beyond high-risk traders to include retirement savers.

Chris Kline, Chief Revenue Officer of Bitcoin IRA, sees this as a significant stride toward mainstream adoption, offering investors more options. The spot Bitcoin race has coincided with Bitcoin’s 150% surge in 2023, rekindling interest in the cryptocurrency. Major pension funds, responding to the 2022 CFA Institute Investor Trust Study, have allocated funds to crypto, with Fidelity already introducing a Bitcoin fund in 2022.

Bitcoin ETF Momentum Grows!

However, owning crypto within retirement accounts remains limited due to Department of Labor guidance from 2022. Most crypto owners resort to self-custody or exchanges like Coinbase and Gemini. Spot Bitcoin ETF approval could broaden options, potentially encouraging more 401(k) providers to offer crypto investments.

Assuming SEC approval, companies may include spot Bitcoin ETFs in 401(k) lineups. Yet, the Department of Labor’s concerns about exposing participants to crypto’s volatility linger. A spot Bitcoin ETF may address these concerns, but initial employer hesitancy is expected.

Tim Picciott, a CFP, foresees a gradual acceptance driven by employee demand rather than employer initiative. Despite custodians like Schwab and Fidelity currently barring direct crypto investments, industry experts believe these mainstream custodians will eventually offer spot Bitcoin ETFs, making exposure to Bitcoin more accessible.

For retirement investors, navigating the volatile crypto market requires careful consideration. A spot Bitcoin ETF managed by professionals could mitigate risks, providing potential tax advantages for long-term investors.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Bitcoin ETF

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Author

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.
News

Bitcoin ETF Storm Threatens Your 401(k) Savings Scheme!

Key Points:

  • U.S. regulators may approve a spot Bitcoin ETF by Jan. 10, opening crypto to retirement savers.
  • 10+ major asset managers, including BlackRock, are vying for approval.
  • Predicted mainstream adoption: Fidelity already offers a Bitcoin fund in 401(k) plans.
Retirement savers seeking exposure to Bitcoin ETF without direct ownership might soon witness a breakthrough.
Bitcoin ETF Storm Threatens Your 401(k) Savings Scheme!

As the January 10 deadline approaches for U.S. regulators to greenlight a spot Bitcoin exchange-traded fund (ETF), anticipation grows within the industry. Over 10 asset managers, including BlackRock, are vying for approval, signaling a potential shift beyond high-risk traders to include retirement savers.

Chris Kline, Chief Revenue Officer of Bitcoin IRA, sees this as a significant stride toward mainstream adoption, offering investors more options. The spot Bitcoin race has coincided with Bitcoin’s 150% surge in 2023, rekindling interest in the cryptocurrency. Major pension funds, responding to the 2022 CFA Institute Investor Trust Study, have allocated funds to crypto, with Fidelity already introducing a Bitcoin fund in 2022.

Bitcoin ETF Momentum Grows!

However, owning crypto within retirement accounts remains limited due to Department of Labor guidance from 2022. Most crypto owners resort to self-custody or exchanges like Coinbase and Gemini. Spot Bitcoin ETF approval could broaden options, potentially encouraging more 401(k) providers to offer crypto investments.

Assuming SEC approval, companies may include spot Bitcoin ETFs in 401(k) lineups. Yet, the Department of Labor’s concerns about exposing participants to crypto’s volatility linger. A spot Bitcoin ETF may address these concerns, but initial employer hesitancy is expected.

Tim Picciott, a CFP, foresees a gradual acceptance driven by employee demand rather than employer initiative. Despite custodians like Schwab and Fidelity currently barring direct crypto investments, industry experts believe these mainstream custodians will eventually offer spot Bitcoin ETFs, making exposure to Bitcoin more accessible.

For retirement investors, navigating the volatile crypto market requires careful consideration. A spot Bitcoin ETF managed by professionals could mitigate risks, providing potential tax advantages for long-term investors.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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