Coinbase, a crypto exchange platform has recently teamed up with ForUsAll, a 401(k) provider in order to offer investments for retirement accounts. Following the partnership, the participants will be allowed to invest up to 5% of their retirement portfolio into crypto assets such as Bitcoin and Ethereum.
The recent partnership between the exchange and the 401(k) advisor will be allowing its clients to provide their employees with an option to invest up to 5% of their portfolio into cryptocurrencies.
Talking about the main take of this partnership, the coins purchased will be taken care of by Coinbase Institutional which makes it a first of its kind enterprise.
In addition to this, it should be noted that ForUsAll has over $1.7 billion worth of assets under management for more than 70k employees. However, the figure is significantly less in contrast to the entire retirement account market that stands at $22 trillion.
The initiative has come at that point in time when the mainstream acceptance of cryptocurrencies is increasing. Recently, El Salvador became the first country to accept Bitcoin as legit tender.
At present, none of the 401(k) providers allows direct crypto buying in retirement accounts, not even Fidelity and Charles Schwab.
Although the fact that the crypto market has a whole lot of fluctuations can not be ignored, the allocation of a small amount of money into cryptocurrency helps with the diversification of investments.
In case crypto allocations of the participants exceed the 5% bar in their portfolio, ForUsAll will automatically alert the participants keeping in mind the convolution of crypto. As a result of this, the participant won’t be allowed to invest furthermore money into crypto assets.