The recent decision to allow cryptocurrency inclusion in US pension plans might significantly impact Bitcoin's market value. Experts provide insights on how this change might unlock new investment opportunities.
Potential for Bitcoin Growth
André Dragosch, head of European research at Bitwise, stated that the inclusion of cryptocurrencies in retirement plans could lead to Bitcoin prices exceeding $200,000 by the end of 2025. He noted that this event could open access to substantial investment amounts.
Comparison to Bitcoin ETFs
Dragosch also mentioned that including cryptocurrencies in pension plans might be more significant for Bitcoin prices than the approval of Bitcoin ETFs in the US. According to him, this development could symbolize an influx of $122 billion in new capital, assuming a standard 1% allocation.
Pension Funds' Attitude Towards Bitcoin
According to a Bitwise survey, most pension fund managers may recommend a 2.5% or 3% allocation to Bitcoin, suggesting larger inflows than the initial 1%. The first inflows from retirement plan managers could happen as early as this fall.
Including cryptocurrencies in retirement plans could not only reshape the investment landscape but also significantly influence Bitcoin prices. Experts emphasize the importance of these changes and anticipate further growth in cryptocurrency investments.
