401 (k) provider, ForUsAll Inc., has teamed up with Coinbase to allow workers to invest up to 5% of their contributions in digital assets, according to WSJ.
- ForUsAll’s embrace of cryptocurrencies happens amid increased interest in digital assets
- The option to invest in cryptocurrencies will start in July
- Proponents of similar moves say workers can increase their expected returns without getting exposed to higher risks, as well as get a hedge against inflation
- ForUsAll crypto participants are expected to read disclosures about the volatile nature of digital assets.
- Participants will be alerted when their crypto investments are above 5% of the balance and will be urged to transfer some digital assets to bonds or stocks
- ForUsAll also plans to allocate small amounts to alternative areas such as venture capital, private equity, and real estate.
ForUsAll controls about $1.7 billion in retirement-plan assets, an insignificant amount to the $22 trillion market. COIN: NASDAQ is up 1.72% on premarket.