How to Invest in Cryptocurrency Through Your Retirement Account

Over the past few years, Bitcoin and other cryptocurrencies have rapidly risen to become a mainstream asset class with a market cap of trillions of dollars. As a result, many people, especially younger generations, are looking for ways to invest in cryptocurrencies through their retirement accounts.

According to a recent survey by Investopedia, nearly a quarter of millennials currently use cryptocurrency to fund their retirement goals.

If you are interested in integrating crypto into your traditional retirement or brokerage account, our partner Grayscale offers a variety of options. For individuals and institutions, Grayscale's funds offer a convenient way to gain exposure to cryptocurrencies. For example, as of March 2022, Morgan Stanley reported that it had $458 million worth of Grayscale Bitcoin Trust funds.

One of the most popular retirement savings vehicles is the IRA. Depending on your specific situation, a traditional or Roth IRA can help you accumulate retirement savings in a tax-advantaged way. (To learn more about each way, check out our comprehensive guide to retirement savings.)

If you are looking for ways to add cryptocurrency investments to your IRA, Grayscale's funds cover a variety of popular and emerging cryptocurrencies. Many Grayscale funds have publicly quoted ticker symbols that can be searched in brokerage accounts like Schwab and Fidelity or robo-advisors like Wealthfront and then added to your IRA portfolio. Other funds are only available to accredited investors in private placements and can also be purchased through many IRA providers.

Grayscale Bitcoin Trust (ticker GBTC) is by far the most popular trust, with a market cap of over $20 billion as of April 2022. Other trusts include Grayscale Ethereum Trust (ETHE), Grayscale Litecoin Trust (LTCN), and Grayscale Digital Large Cap Fund (GDLC), which offers investors diversified exposure to some of the largest cryptocurrency tokens by market cap. Grayscale also regularly adds more cryptocurrency funds to its product lineup and launches products covering the Metaverse, DeFi, and smart contract platforms, among others.

If you are interested in investing in cryptocurrencies directly in your IRA or traditional brokerage account, enter the Grayscale ticker symbol in your account or contact your financial services provider of choice. Additionally, we recommend that you consult with a registered financial advisor on how to add cryptocurrency to your retirement portfolio.