The US Department of Labor allows cryptocurrencies in corporate retirement plans.
“Employers will be hesitant to allow this to happen first,” says the entrepreneur.
The integration of Bitcoin (BTC) into traditional financial markets is gaining momentum worldwide. In the United States in particular, there is talk of the imminent approval of several Bitcoin spot ETFs by the Securities and Exchange Commission (SEC).
It is expected accordingly public today the CNBC portal, which if approved, ETFs could soon be a reality in 401(k) retirement plans. This is an employer-sponsored retirement plan in the United States to which both the employee and the employer can contribute. These types of plans benefit from tax advantages.
Until now, The options for holding Bitcoin or other digital assets in retirement accounts were limited. Many investors choose to hold BTC outside of these accounts, on exchanges, or, better yet, in self-custody wallets with retirement in mind.
The approval of Bitcoin spot ETFs could significantly expand options for investorsThis allows another regulated alternative to access digital assets for retirement.
The CNBC report quotes Chris Kline, chief income officer of Bitcoin IRA, a company that already allows savers to invest in more than 60 cryptocurrencies for their retirement. He points out that there is a possibility that Bitcoin ETFs could reach these pension funds “It will be a big step towards widespread adoption of Bitcoin and cryptocurrencies by giving investors more options.”.
CNBC also details that, according to a study By 2022, “94% of state and local pension plans had some level of exposure to cryptocurrencies.” There is speculation that this number will increase with the approval of spot Bitcoin ETFs.
In any case, this is to be expected not everyone will be so optimistic. Tim Picciott, director of the Innovative Advisory Group, believes that “employers will be very reluctant to be the first to allow this.” He adds: “I don't think most HR departments and systems administrators will just get together. “I think there needs to be a movement on the part of workers to demand this.”
As CriptoNoticias has reported, the SEC has until January 10 to decide whether or not to allow spot Bitcoin ETFs in the United States. According to Bloomberg Intelligence specialist James Seyffart, the approval window begins on January 8th:
“The window is officially from January 5th to 10th. In reality, this means that any possible approval order will arrive on Monday, January 8th, Tuesday, January 9th, or Wednesday, January 10th. Mark your calendars, people.
James Seyffart, hedge fund specialist at Bloomberg Intelligence