Donald Trump has signed a decree that enables the addition of cryptocurrencies to American pension funds 401 (K), or the equivalent of Polish employee capital plans (PPK). Long -term changes the rules of the game!
Donald Trump wants pensioners to invest in cryptocurrencies
Trump agreed to add digital assets to 401 (K). Why is this important? We are talking about one of the largest pension systems in the world, to which over 100 million Americans are “connected” and which is worth a total of about 12 trillions of USD. The cryptocurrency market is today “only” USD 4 trillions.
It sounds beautiful and should make the bulls sharpen the corners. It’s just that it’s a good news, but only for the Hodlers. The decision of the White House does not mean that part of the pension capital immediately will go to the cryptocurrency market. Each fund that operates under 401 (K) will now decide about its risk strategy. This means that Trump gave this type of company a new opportunity to invest, but it will not force them to place capital in cryptocurrencies. Certainly it will give fruit in a few years, but not immediately.
In addition, there is one more argument not to jump into the ceiling right away: SEC must develop regulations regarding the process of investing by “four hundred one” in bitcoin and altcoin.
Why, however, this is a reason for joy?
However, my above description could interpret as a certain emotion of the arms and throwing to the reader: “In total, nothing changes.” It is different, but changes need time.
First, we will analyze which capital we are talking about. In the environment of “serious” investors, it is said to place 2% to 5% of their portfolio in cryptocurrencies. Since there are about 12 trillions of USD on the market of 401 (K), $ 600 billion can be affected by $ 600 billion for cryptocurrencies. More important, however, is that it will not be about a one -time shot: investing for retirement is regular and written for years, so the industry for the next decades may have a fairly constant source of money.
It is also important that Trump has razed cryptocurrencies with traditional assets, which are already the basis of future pensions – shares and bonds.
I will emphasize it again: today is not the time to open champagne, but another bull market can stand, among others Under the investment sign “Four hundred ones”.
