Institutional Investors Gaining Exposure to CryptocurrenciesRyan Tucker
One of the key aspects to Bitcoin and other cryptocurrencies gaining traction is their use by more and more people. The more people understand and use Bitcoin, the greater the network effects and the greater the benefit to subsequent users. And the more people use or invest in Bitcoin, the larger the user base to militate against any regulatory attempts to crack down on Bitcoin. So every piece of news that Bitcoin is gaining greater adoption means that the likelihood of Bitcoin ever just disappearing grows slimmer and slimmer.
A recent survey found that nearly one quarter of institutional investors have some sort of exposure to digital assets such as Bitcoin. That’s a pretty phenomenal percentage, particularly since most surveys of the general public indicate that Bitcoin ownership overall is still in the single digits. Not only do 22 percent of institutional investors own some sort of digital asset, 40 percent claim that they plan to purchase digital assets within the next five years.
While over half of the survey participants preferred to purchase their digital assets directly, nearly three-quarters preferred to purchase investment products that held digital assets. That’s good news for Bitcoin IRAs, which due to regulatory foot dragging on ETFs and other Bitcoin-holding products remain one of the best Bitcoin investment products around.
With a Bitcoin IRA investors hold their Bitcoin within an investment vehicle, an IRA that has the same tax advantages as a traditional IRA. That allows investors to purchase Bitcoin with pre-tax dollars or to transfer or roll over funds from existing retirement savings such as an IRA, 401(k), or TSP account to invest in Bitcoin. A Bitcoin IRA allows investors to continue making gains as Bitcoin rises in value and allows them to defer taxes on those gains until they decide to take a distribution.
And with the many security options offered by Bitcoin IRA custodians, investors’ Bitcoin assets are far more secure than they would be if they were held in a normal online wallet, thus minimizing the threat of hacking or theft. It’s no wonder then that more and more investors are choosing to invest in Bitcoin through a Bitcoin IRA.