401 (K) Cryptographic pension plans “larger” than Bitcoin ETF approval: analyst

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According to André Dragosch, the head of European Bitcoin research and unlock billions of dollars in the recent capital, potentially exceeding assets above USD 200,000, can mean the milestone of Bitcoin reception and unlock billions of dollars, potentially exceeding the assets above USD 200,000.

President Donald Trump paved the way to incorporate cryptocurrencies in retirement plans in the USA 401 (K), signing the executive order on August 7, granting Americans access to digital assets through their retirement plans.

Dragosch said that the inclusion of cryptocurrencies in plans 401 (K) can be even more significant for the Bitcoin (BTC) price than approving stock exchange funds in American stock market zones (ETFS) in January 2024.

This “stubborn” development can even be “greater than the very approval of ETF in the US”, signaling a recent capital worth $ 122 billion, assuming a tiny 1% of the portfolio allocation, Dragosch told Cointelegraph during the Daily Chain Daily X Spaces program on Monday, throwing a price forecast for good measurement:

“USD 200,000 remains the official forecast by the end of the year.”

“If you look at 401 (K) retirement plans and defined control in the US, they are huge,” said Dragosch, adding that 1% was “relatively conservative” respect for the allocation for the $ 12.2 trillion industry.

Taking into account digital assets for retirement plans will allow 401 (K) managers of investment portfolios in ETF Bitcoin, which can exceed the Bitcoin price to the recent highest all time, flashing another confident target signal Bitcoin Bitwee in the amount of $ 200,000 at the end of 2025.

Related: The Bitcoin corporate boom raises the concerns of the “Fort Knox” nationalization

Fed policy, pension plans perceived as double drivers

Based on the BitWise survey for financial advisors, most of the portfolio managers more often recommend 2.5% or 3% Bitcoins allocation on retirement plans, which suggests greater influence than the initial 1% initial allocation.

The first influence of bitcoins from the managers of pension plans may appear this fall, coinciding with the first expected reduction in interest by the US Federal Reserve, which can lead Bitcoin to recent ups, said Dragos, adding:

“If you see further reduction in the FED rates, there is definitely a case for $ 200,000 by the end of the year.”

Markets are valued in 83% chance that the FED will reduce interest rates by 25 base points during the next federal meeting of the Open Market Committee on September 17, According to For the latest estimates of the Fedwatch of the CME group.

Target feeding of interest rates. Source: CME group fedwatch tool

Related: Analysts see the exhaustion of Bitcoin buyers

In addition to improving the expectations of monetary policy, the acceptance of Bitcoin may also be accelerated by the financial incentive of 401 (K) of plans providers to offer the ETF Bitcoin exhibition.

Blackrock, Fidelity and Vanguard belong to the largest suppliers of the US pension plan. While Vanguard still has to “Greenlight” Crypto ETF, “Blackrock and Fidelity have a huge economic incentive to include these ETF Bitcoin in their standard plans,” said Dragosch.

Used, they meet the ETF Bitcoin review according to market participation. Source: Dune

Blackrock is the issuer of the largest ETF Bitcoin, Ishares Bitcoin Trust, with management of over $ 84 billion, which is 57.5% of the total market share, while ETF Fidelity is the second largest, it has 22.4 billion dollars, which is 15.3% of total market share, Dune The data show.

On Friday, Paul Atkins, chairman of the Committee on Pope securities and stock exchanges, confirmed that the regulatory agency cooperates with the Trump administration to enable the investor’s retirement plan for private equity, including cryptocurrency assets, but called the need for “the right handrails” around alternative investments.

https://www.youtube.com/watch?v=20zfedqdkl8

Warehouse: Cryptographic traders “cheat” with price forecasts – Peter Brandt

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