Cryptocurrency Targets the $49 Trillion US Retirement Market

marsbitОпубліковано о 2026-06-02Востаннє оновлено о 2026-06-02

Анотація

Cryptocurrency is targeting the U.S. retirement market, valued at $49.1 trillion, through Self-Directed IRAs. These accounts allow investments beyond traditional stocks and bonds into assets like real estate, gold, and nearly 100 crypto tokens. IRA Financial founder Adam Bergman argues that mainstream institutions have limited access to such alternative assets to protect their fee-based revenue, not due to risk alone. Regulatory shifts, including a revoked cautionary note and a recent pro-alternative asset executive order, are opening doors. IRA Financial's new platform consolidates stocks, crypto, and other assets under one low annual fee, unlike typical asset-based charges. Bergman, a former tax lawyer and early Bitcoin adopter, cites examples like Peter Thiel's tax-free Roth IRA growth. However, experts warn of significant risks: self-directed IRAs lack custodian investment reviews, face custody vulnerabilities (highlighted by a $36M hack on IRA Financial's Gemini accounts), and risk disqualification if investors hold private keys. Despite risks, Bergman maintains high personal allocation to alternatives, seeing them as key to wealth building. The convergence of policy, platform innovation, and generational demand is pulling crypto into retirement planning, but requires careful, advised consideration due to its complexity and potential pitfalls.

Author: Forbes

Compiled by: AididiaoJP, Foresight News

The U.S. retirement system, valued at $49.1 trillion, is the largest savings pool for ordinary people. Today, cryptocurrency is making a strong entry into this domain through Self-Directed IRAs. A leading self-directed custodian recently launched a new platform that allows investors to trade nearly 100 crypto tokens in real-time within the same account, while also holding assets such as stocks, real estate, gold, and private equity.

Note: A Self-Directed IRA is a special type of Individual Retirement Account (IRA) that allows the account holder to decide and control the investment direction, unlike traditional IRAs which are limited to conventional financial products like stocks, bonds, mutual funds, or ETFs. In simple terms, it offers greater investment freedom, enabling retirement funds to be directed towards more "alternative assets."

In a podcast, IRA Financial founder and principal Adam Bergman stated bluntly: "Most Americans have been brainwashed by large financial institutions into thinking that IRAs or 401(k)s can only invest in traditional assets. But this hasn't been the case for the past 50 years." He pointed out that the truly wealthy have not amassed their fortunes solely by holding stocks, but rather through alternative investments like private assets, private equity, hedge funds, and assets like Bitcoin. "We've all been deceived."

Bergman emphasized that over-concentration in the S&P 500, mutual funds, or ETFs does not actually diversify risk, as you might essentially only be holding shares in seven large companies. The biggest advantage of a retirement account is the tax-free growth of funds, which is precisely the key attraction for alternative assets like cryptocurrency entering this market.

The Policy Gate is Now Open

For a long time, large institutions like Fidelity and Schwab have been accused of "building walls" to block alternative assets from entering retirement accounts. Bergman expressed significant dissatisfaction with this: "They claim these assets are too risky, but it's really because they can't make money from them—when clients buy real estate or gold, they can't charge asset-based management fees."

However, the regulatory wind is shifting. In March 2022, the U.S. Department of Labor required 401(k) fiduciaries to be "extremely cautious" when offering cryptocurrency options; on May 28, 2025, this guidance was revoked. Just ten weeks later, President Trump signed an executive order titled "Democratizing Alternative Asset Access for 401(k) Investors," explicitly instructing regulators to pave the way for private equity, real estate, and digital assets in workplace retirement plans. Generation Z, set to inherit approximately $15 trillion in wealth, trusts cryptocurrency even more than traditional banks, and they will soon see Bitcoin in their retirement investment portfolios.

One Account, One Fee: A Truly All-Asset Platform

IRA Financial's new platform enables zero-commission trading of stocks, ETFs, and mutual funds through Interactive Brokers; crypto trading is completed via Bitstamp and Robinhood, with buy-side commissions capped at about 1% and no holding fees. Real estate, hard money loans, private equity, and precious metals are all housed under the same account, with an annual fee of less than $500.

"We are the only institution in the country that can put stocks, Bitcoin, and real estate all on one platform with a single, low flat fee," Bergman claimed. "You can't do that at Vanguard, Schwab, or Fidelity." Although competitors like iTrustCapital and Alto also offer crypto trading within IRAs, seamlessly integrating multiple asset types without charging asset-based management fees remains rare.

Bergman strongly opposes the industry's common asset-based fee model: "That's practically criminal. Why should I make money from you because you invest wisely? Pay me a management fee, don't penalize you further for performing well."

A Tax Lawyer Betting on Bitcoin

Bergman was once a tax attorney in New York. He quit his job in 2008 to start his company from scratch, drawing no salary for the first five years. In 2015, he bought his first Bitcoin against his financial advisor's objections. "The advisor said I was crazy, that Bitcoin was a scam. I thought at the time, I'm just over 40, I have 20-30 years ahead of me, and if I lose, it's no big deal." He stated that all decisions revolve around risk and reward. IRA Financial was also one of the earliest institutions to allow retirement accounts to hold Bitcoin.

He specifically mentioned Peter Thiel's Roth IRA: According to a 2021 ProPublica report, that account started in 1999 with founder shares worth less than $2,000 and had grown to about $5 billion by the end of 2019, completely tax-free. "I admire Thiel," Bergman said.

Risk Warnings Cannot Be Ignored

Self-Directed IRAs are not without pitfalls. Renowned IRA expert Ed Slott described such accounts as "you're on your own." The SEC, FINRA, and NASAA have all warned that self-directed accounts offer a broader range of investment options with potentially higher risks, and custodians do not vet the assets clients purchase.

IRA Financial itself suffered a severe blow: In February 2022, hackers exploited a master API key to steal approximately $36 million worth of Bitcoin and Ethereum from client accounts the company held at Gemini, with the funds later mixed through Tornado Cash. This incident highlighted centralized custody risks—similar issues now plague the spot Bitcoin ETF market, with most assets concentrated in a single custodian's hands.

More critically, if an investor holds the private keys to cryptocurrency within an IRA themselves, the entire account could be disqualified, turning decades of tax advantages into a taxable event instantly.

Despite this, Bergman personally allocates 50%-60% of his own funds to alternative assets and is writing a book arguing that this is precisely how the wealthy operate. "There's no reason you can't buy real estate or gold in an IRA at Vanguard, Schwab, or Fidelity. Why should big banks block me?" It took him 16 years to build this platform.

Conclusion

As policies open up and technology platforms mature, cryptocurrency is entering the mainstream U.S. retirement savings system in an unprecedented way. Bergman's views are radical yet hit a sore spot: traditional financial institutions have long restricted ordinary people's wealth choices, and alternative assets may be the key to truly widening the wealth gap. However, risk and opportunity coexist. Investors must fully assess the complexity and potential pitfalls of self-directed accounts while pursuing high returns.

Crypto investment and retirement planning are highly personalized; it is advisable to consult with professional tax and financial advisors before making cautious decisions.

Пов'язані питання

QWhat is a Self-Directed IRA and how does it differ from a traditional IRA?

AA Self-Directed IRA (SDIRA) is a type of individual retirement account that allows the account holder to direct and control their own investments, rather than being limited to conventional assets like stocks, bonds, mutual funds, or ETFs offered by traditional IRAs. It grants greater investment freedom, enabling retirement funds to be allocated to a wider range of 'alternative assets' such as real estate, private equity, precious metals, and cryptocurrencies.

QAccording to Adam Bergman, what is the key reason large financial institutions have historically blocked alternative assets from retirement accounts?

AAccording to Adam Bergman, founder of IRA Financial, large institutions like Fidelity and Schwab have 'built walls' to keep alternative assets out of retirement accounts primarily because they cannot earn money from them. When clients invest in assets like real estate or gold, these institutions cannot charge asset-based management fees, unlike with traditional stock or fund investments. He argues they disguise this financial motive by claiming such assets are too risky.

QWhat recent regulatory change has opened the door for cryptocurrencies and other alternative assets in workplace retirement plans like 401(k)s?

AA significant regulatory shift occurred when President Trump signed an executive order titled 'Democratizing Access to Alternative Assets for 401(k) Investors.' This order, signed shortly after the Department of Labor withdrew its earlier cautious guidance on cryptocurrencies in 401(k)s, explicitly instructs regulators to pave the way for private equity, real estate, and digital assets within workplace retirement plans.

QWhat are some of the major risks associated with using a Self-Directed IRA to invest in cryptocurrencies?

AMajor risks include: 1) **Custodial and Security Risk**: Centralized custody points can be targets for hacks, as demonstrated by the $36 million theft from IRA Financial's client accounts in 2022. 2) **Account Disqualification Risk**: If an investor holds the private keys to their IRA's cryptocurrency themselves, the entire account could be disqualified, turning decades of tax-deferred growth into an immediate taxable event. 3) **Lack of Oversight**: SDIRA custodians do not vet or approve the assets clients choose to buy, placing the full burden of due diligence on the investor.

QHow does IRA Financial's new platform differentiate itself from competitors like iTrustCapital and Alto?

AIRA Financial's platform claims to be unique in offering a truly integrated, multi-asset account with a single flat fee (under $500 annually). It allows real-time trading of nearly 100 crypto tokens, stocks, ETFs, and mutual funds (via Interactive Brokers), and holds assets like real estate, private equity, and precious metals—all within one account. While competitors offer crypto trading in IRAs, Bergman states that seamlessly integrating multiple asset types without charging asset-based management fees is rare.

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