BitcoinIRA, a qualified individual retirement account (IRA), is the only U.S.-based fund approved by the IRS to allow investors to keep the digital currency Bitcoin in their retirement portfolio. While the legal and taxation status of cryptocurrencies are still ambiguous, many investors seem to be flocking to this unique asset that is seemingly uncorrelated to other asset classes and has returned nearly 80% year to date. (For more, see: How To Add Bitcoins To Your Retirement Account)
The BitcoinIRA has raised over $2 million in investor funds over the past five months when it first opened for investment. Customers looking to invest a portion of their retirement their money in this Bitcoin-based retirement fund have two options: they can either directly invest in bitcoins, stored in a specialized bitcoin wallet offered by Bitcoin IRA, or opt for a proxy certificate ETF which is simply a dollar denominated representation of the digital currency.
Other Bitcoin ETFs have tended to trade at 20-30% premiums over the actual spot price of bitcoin. However, they also have layers of fees chargeable on the purchase, for annual management, and for liquidation. Other Bitcoin ETF's charge recurring fees as opposed to simple a one-time fee charged by BitcoinIRA. Investors looking to diversify their portfolios may consider this a good potion since the price of Bitcoin is so far uncorrelated with traditional asset classes such as stocks, bonds, and commodities. (See also: Risks & Rewards Of Investing In Bitcoin)
The Bottom Line
BitcoinIRA is the only Bitcoin-based retirement investment portfolio that allows people to invest Bitcoin directly into a qualified retirement account, where growth accrues tax-deferred. The investment options offered by Bitcoin IRA are approved by IRS. The platform constantly works with leading fintech professionals to provide secure, high-quality Bitcoin investments for long-term investors. Customers looking forward to investing their money in Bitcoin-based retirement fund have two options: they can either directly invest in bitcoins, stored in a specialized bitcoin wallet offered by Bitcoin IRA or opt for a proxy certificate ETF which is simply a dollar denominated representation of the digital currency.