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Bitwise CIO: 401(k) Allocation of Cryptocurrency Will Completely Change the Market, Resulting in Higher Returns and Lower Volatility

Summary: According to the American Investment Company Association and Federal Reserve data, the total retirement assets in the United States reached $43.4 trillion by the first quarter of 2025. Defined contribution plans (including $8.7 trillion in 401(k) plans) account for over $12 trillion. Bitwise Chief Investment Officer Matt Hougan stated that this shift could change the ...

According to the American Investment Company Association and Federal Reserve data, the total retirement assets in the United States reached $43.4 trillion by the first quarter of 2025. Defined contribution plans (including $8.7 trillion in 401(k) plans) account for over $12 trillion. Bitwise Chief Investment Officer Matt Hougan stated that this shift could change the cryptocurrency market by introducing a slow, steady, consistent retirement investment mechanism, resulting in higher returns and lower volatility. 0G Labs co-founder and CEO Michael Heinrich cautioned that if done well, this regulation could unlock trillions of dollars in retirement funds for Bitcoin and other compliant assets. However, if done poorly, it could lead to political and financial backlash. Details such as which tokens qualify, custody arrangements, and protective measures to be taken are crucial.

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