According to recent research by Schwab, research reveals that younger generations, such as millennials and Gen Z, are more likely to prefer a wider variety of investment options in their retirement accounts, including cryptocurrency, than older generations, such as Gen X and baby boomers. In April, a poll of 1,100 401(k) plan members was taken.
About 45% of Gen Z and millennial retirees who have saved for retirement stated they would like to be able to use their 401(k) accounts to invest in cryptocurrencies. Only 11% of baby boomers and 31% of Gen X respondents agreed. It’s not surprising that during the pandemic, interest in cryptocurrency soared among younger investors.
27% of young Americans according to a survey conducted last week by cryptocurrency exchange KuCoin, and 50 million people between the ages of 18 and 60 have owned or exchanged cryptocurrencies in the last six months.
Fidelity Investments announced in April that through its internal 401(k) programs, people will be able to invest a portion of their retirement funds in bitcoin. A corporate representative informed the media last week that the Digital Assets Account was on schedule to welcome its first plan sponsor customers this autumn.
In November 2021, Rest Super, an Australian retirement fund with 1.9 million members, became the first to provide bitcoin allocation as a component of a diversified portfolio.
While the majority of retirement funds for digital assets are offered in the form of Bitcoin(BTC) or Ethereum(ETH). A North Virginian country proposed putting a portion of pension funds for retirees into a decentralized finance (DeFi) yield farming account in May 2022. This proposal was later approved in August 2022.
However, mistakes might happen. The $154.7 million that a Quebec pension fund substantially invested in the now-defunct cryptocurrency loan platform Celsius lost virtually all of its value.