Upon approval, the Spot Bitcoin ETF will benefit retirement savers

According to the Chief Revenue Officer of Bitcoin IRA, Chris Kline, with the hanging issue of consent for a spot Bitcoin exchange-traded fund (ETF) going in their favor, the retirement savers will be able to gain from the connectivity with their company’s 401(k) plans. If they are eligible, it can also be possible for solo 401(k)s and self-directed IRAs. In his opinion, this could lead to the mass acceptance of Bitcoin.  

If all goes well, the retirement savers will be linked to Bitcoin but will not obtain ownership of the cryptocurrency coins. Everyone involved is waiting for the final decision on January 10, 2024, with bated breath. Expectations appear to be high, and whispers are circulating that it may be December 29th, 2023. The high-risk players and retirement savers will be the ones who stand to gain.

Various pension funds have been distributing funds to crypto as an asset category for a few years now. According to a survey undertaken by the 2022 CFA Institute Investor Trust, 94% of state and regional pension schemes were linked with cryptocurrency.

Fidelity Investments, the most prominent 401(k) plan administrator in the United States, launched a Bitcoin fund by the end of 2022. Employees who are comfortable with the associated risk factors and the volatility of cryptocurrencies can use this to invest in Bitcoin through their company’s 401(k) plan. However, it has been observed that workers are hesitant to include cryptocurrencies in their 401(k) plans, owing to the US Department of Labor’s 2022 guidelines, which do not completely rule out the use of cryptocurrency in company retirement plans.

According to Steven T. Larsen, a registered financial planner and founder of Columbia Advisory Partners in Spokane, Washington, if the SEC grants its consent on the spot Bitcoin ETF issue, numerous businesses will integrate it into their 401(k) scheme.

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A spot Bitcoin ETF may be able to address specific issues raised by the DOL, such as those relating to custody, recordkeeping, and evaluation. A manager of a spot Bitcoin ETF may be able to prevent, if not completely eliminate, risk factors by converting to cryptocurrency connectivity.

Scott Cook

Scott Cook got into crypto world since 2010. He has worked as a news writer for three years in some of the foremost publications. He recently joined our team as a crypto news writer. He regularly contributes latest happenings of crypto industry. In addition to that, he is very good at technical analysis.

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