'Bitcoin Is the Best Risk-Reward Investment Right Now.' Nearly 20% of Millennials Are Adding Crypto to Retirement Portfolios

Core Insights - The rising value of Bitcoin, currently around $122,000, is prompting younger Americans to consider cryptocurrency as a viable option for retirement portfolios, with a NerdWallet survey indicating that 10% of U.S. adults with retirement accounts hold crypto [1][2] - Among Millennials, the percentage rises to 18%, highlighting the rapid growth of digital assets in tax-advantaged accounts [2] - Traditional financial firms and policymakers are increasingly accommodating cryptocurrency investments, with platforms like IRA Financial allowing direct crypto purchases through IRA accounts [3][5] Investment Trends - The generational divide in investment strategies is evident, as younger investors in their 20s and 30s are more willing to allocate a portion of their savings to high-volatility assets like crypto, viewing it as a modernization of traditional retirement accounts rather than a replacement [4] - The introduction of Self-Directed IRAs and other regulated retirement structures enables investors to hold cryptocurrencies directly, providing them with control over trades and tax advantages [5][6] - Investors can utilize Self-Directed IRAs, Solo 401(k)s, or IRAfi Crypto accounts to invest in Bitcoin, Ethereum, and other digital currencies, with gains growing tax-deferred or tax-free depending on the account type [6]