Cryptocurrencies Target the $49 Trillion U.S. Retirement Market
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Cryptocurrencies Target the $49 Trillion U.S. Retirement Market
Amid Trump’s policy support, alternative assets such as Bitcoin have officially entered 401(k) and IRA accounts.
Navigating Web3 tides with focused insightsBy: Forbes
Translated by: AididiaoJP, Foresight News
The U.S. retirement system—valued at $49.1 trillion—is the largest savings pool for ordinary Americans. Cryptocurrency is now aggressively entering this space through self-directed IRAs (Individual Retirement Accounts). A leading self-directed custodian recently launched a new platform enabling investors to trade nearly 100 crypto tokens in real time within a single account—while simultaneously holding stocks, real estate, gold, and private equity.
Note: A self-directed IRA is a special type of IRA that allows the account holder to make and control investment decisions directly—unlike traditional IRAs, which restrict investments to conventional financial instruments such as stocks, bonds, mutual funds, or ETFs. In short, it offers greater investment flexibility, allowing retirement funds to access a broader range of “alternative assets.”
Adam Bergman, founder and CEO of IRA Financial, stated bluntly on a podcast: “Most Americans have been brainwashed by large financial institutions into believing that IRAs or 401(k)s can only hold traditional assets. But that hasn’t been true for the past 50 years.” He pointed out that those who’ve truly built wealth didn’t do so solely by holding stocks—but rather through alternative investments like private assets, private equity, hedge funds, and Bitcoin. “We’ve all been misled.”
Bergman emphasized that over-concentration in the S&P 500 or in mutual funds and ETFs does not constitute true diversification—you may effectively be holding shares of just seven major corporations. The greatest advantage of retirement accounts lies in their tax-deferred (or tax-free) growth potential—a key attraction drawing alternative assets like cryptocurrency into this market.
Regulatory Doors Are Opening
For years, large institutions such as Fidelity and Schwab have been accused of “building walls” to block alternative assets from entering retirement accounts. Bergman expressed strong frustration with this practice: “They claim these assets are too risky—but the real reason is they can’t earn asset-based management fees when clients buy real estate or gold.”
Yet regulatory winds are shifting. In March 2022, the U.S. Department of Labor advised 401(k) fiduciaries to exercise “extreme caution” when offering cryptocurrency options; on May 28, 2025, that guidance was rescinded. Just ten weeks later, President Trump signed the executive order “Democratizing Access to Alternative Assets for 401(k) Investors,” explicitly directing regulators to pave the way for private equity, real estate, and digital assets in workplace retirement plans. Generation Z—set to inherit roughly $15 trillion in wealth—trusts cryptocurrency more than traditional banks. Bitcoin will soon appear in their retirement portfolios.
One Account, One Fee: A True All-Asset Platform
IRA Financial’s new platform enables commission-free trading of stocks, ETFs, and mutual funds via Interactive Brokers. Crypto trades are executed through Bitstamp and Robinhood, with a maximum ~1% fee on purchases and no holding fees. Real estate, hard-money loans, private equity, and precious metals all reside in the same account—with annual fees under $500.
“We’re the only firm nationwide that can house stocks, Bitcoin, and real estate on a single platform—and charge only one low flat fee,” said Bergman. “You can’t do that at Vanguard, Schwab, or Fidelity.” Though competitors like iTrustCapital and Alto also offer crypto trading within IRAs, seamless integration across multiple asset classes—without charging asset-based management fees—remains rare.
Bergman strongly opposes the industry’s common asset-based fee model: “It’s criminal. Why should I profit from your intelligence? Pay me a management fee—and don’t penalize you for doing well.”
A Tax Attorney Betting on Bitcoin
Bergman was formerly a New York tax attorney. He left his job in 2008 to found his company from scratch—and took no salary for the first five years. In 2015, he bought his first Bitcoin despite strong objections from his financial advisor. “My advisor called me crazy and said Bitcoin was a scam,” he recalled. “I thought, ‘I’m only in my early 40s—I’ve got another 20–30 years. Even if I lose money, it’s no big deal.’” Every decision he makes, he says, revolves around risk and return. IRA Financial was also among the earliest firms to allow Bitcoin holdings within retirement accounts.
He specifically cited Peter Thiel’s Roth IRA: According to a 2021 ProPublica report, the account began in 1999 with less than $2,000 in founder shares—and grew to approximately $5 billion by year-end 2019, entirely tax-free. “I deeply admire Thiel,” Bergman said.
Risk Warnings Cannot Be Ignored
Self-directed IRAs are not without pitfalls. Renowned IRA expert Ed Slott describes such accounts as “you’re on your own.” The SEC, FINRA, and NASAA all warn that self-directed accounts offer broader—but potentially higher-risk—investment options, and custodians do not vet assets purchased by clients.
IRA Financial itself suffered a major setback: In February 2022, hackers exploited a primary API key to steal approximately $36 million worth of Bitcoin and Ethereum from customer accounts held at Gemini. The stolen funds were subsequently laundered via Tornado Cash. This incident highlights custodial concentration risk—a problem now also plaguing the spot Bitcoin ETF market, where most assets are held with a single custodian.
Even more critical: If an investor personally holds the private keys to cryptocurrency held within an IRA, the entire account may be disqualified—turning decades of tax advantages into an immediate taxable event.
Nonetheless, Bergman himself allocates 50%–60% of his capital to alternative assets and is writing a book arguing that this is precisely how the wealthy build wealth. “There’s no reason why you shouldn’t be able to buy real estate or gold inside a Vanguard, Schwab, or Fidelity IRA. Why should big banks get to block me?” It took him 16 years to build this platform.
Conclusion
With regulatory barriers lifting and technology platforms maturing, cryptocurrency is entering the U.S. mainstream retirement savings system in unprecedented ways. Bergman’s view is provocative yet incisive: For decades, traditional financial institutions have restricted ordinary people’s wealth-building options—and alternative assets may well be the decisive factor separating wealth accumulation from stagnation. Yet risk and opportunity coexist: Investors must carefully weigh the complexity and potential pitfalls of self-directed accounts—even as they pursue outsized returns.
Cryptocurrency investing and retirement planning are highly personalized. We recommend consulting qualified tax and financial advisors before making any decisions.
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