Employees Now Have The Option To Invest In Crypto Via 401(k) Plans

ForUsAll, a San Francisco-based 401(k) provider, has revealed that 50 of its 550 clients started allowing their employees to invest in leading cryptocurrencies Bitcoin (BTC) and Ether (ETH) using a portion of their 401(k) funds around eight weeks ago.

The 401(k) plan providers are introducing BTC and ETH in their menus amid a bearish crypto winter as Bitcoin has crashed more than 70% from the all-time high it witnessed on Nov. 10, 2021, at a price of $69,000. Meanwhile, Ether has also dropped more than 68% from its all-time high on Nov. 16, 2021, to a price of $4,900.

David Ramirez, chief executive officer (CEO) of ForUsAll, revealed that 300 of the 2,500 employees who are eligible to invest in crypto via the firm's 401(k) funds have invested in crypto coins, the Wall Street Journal reported Thursday.

The CEO also confirmed that the plan is to increase the number of firms adding crypto options for employees' 401(k)s by 100 as the year ends.

Other 401(k) providers, including Vanguard Group, Alight Solutions LLC and T. Rowe Price Group Inc. are not planning to introduce Bitcoin and Ether to their menus because of regulatory uncertainty and a lack of demand, according to the outlet.

Moreover, Alight is publishing a detailed report of a survey involving 90 employers and more than 3 million workers soon. The survey reportedly confirms that only 4% of the participants are interested in investing their 401(k)s in crypto and that this small percentage also includes individuals who are waiting for a suitable regulatory environment.

Interestingly, Fidelity Investments, which currently has $4.5 trillion in assets under management, became the first firm to introduce the option of including Bitcoin (BTC) in 401(k) plans.