Starting in July, some retirement savers will have the option to put some of their funds in crypto. Startup 401(k) provider ForUsAll, which works with small businesses, is partnering with cryptocurrency exchange Coinbase to allow users to allocate up to 5% of their holdings in cryptocurrencies.

Why should we care?
Adding cryptocurrencies to 401(k) portfolios comes with heightened risks. Bitcoin lost 40% of its value in two months, but ForUsAll suggests users won’t be able to put more than 5% of their holdings in cryptocurrencies, thereby minimizing the risk. Large 401(k) providers like Schwab and Fidelity currently don’t allow users to invest in crypto. While some may consider crypto as simply another asset class, some industry participants are skeptical about adding crypto to 401(k)s. “There is way too much volatility,” Lew Minsky, president of the Defined Contribution Institutional Investment Association, said in a recent interview. ForUsAll, which charges employees a 0.5% fee for assets under management (AUM), has a total of $1.7B in AUM. “By introducing the Alt 401(k), we are democratizing access to what drives wealth for the wealthy — alternative investment options, combined with our original core offering of low-cost index funds, and personalized help,” Jeff Schulte, CEO of ForUsAll, said in a statement.