- ForUsAll, a US pension fund has partnered with Coinbase crypto exchange
- The partnership allows the pension fund to offer its clients up to 5% crypto exposure
- Also, the fund will offer a product called Alt 401(k) containing about 50 cryptos
ForUsAll, a US-based pension provider, partnered with Coinbase to offer its clients the chance to invest in cryptos. The deal will allow ForUsAll clients to invest up to 5% of their portfolios in crypto.
Notably, the American pension market is currently worth about $22 trillion. However, the majority of pension plans do not directly invest in cryptocurrency. Some funds, however, invest in trusts that invest in crypto, for instance, Grayscale. As such, the sector still has low crypto exposure.
BitcoinIRA is one pension fund that directly invests in crypto and CEO Chris Kline noted,
ForUsAll and Coinbase wouldn’t be doing this if there wasn’t a market. There are people that want this with these types of funds. And they want to have access to new and exciting things with their 401(k)s.
In line with this, ForUsAll CEO David Ramirez stated that excluding crypto exposure, despite its volatility, disadvantages American investors. Ramirez added, “The average American may be at a structural disadvantage relative to large institutions and high net worth individuals, and we just don’t think that’s right.”
Also, ForUsAll manages about $1.7 billion in assets and primarily serves small-to-medium-sized businesses. The deal with Coinbase will allow the pension fund to offer over 50 cryptos in a product called Alt 401(k).
In addition, MicroStrategy CEO Michael Saylor also commented on the partnership in a tweet.
If you invest 5% of your portfolio in #bitcoin, you have made the decision to invest 95% of your portfolio in assets getting demonetized by bitcoin.
— Michael Saylor (@michael_saylor) June 14, 2021
The comment highlights MicroStrategy’s aggressive Bitcoin position. The cloud software company has invested most of its assets in Bitcoin. In fact, MicroStrategy has borrowed heavily, by issuing $500 million in bonds, to add to its 92,079 BTC stash. However, most institutional investors are opting to take more conservative crypto positions. This is especially in light of the recent market volatility.