Many widely held mutual funds, including those in retirement accounts, have invested in bitcoin treasury stocks and other cryptocurrencies. The funds are exposed to companies like Strategy MSTR, which owns over 600,000 bitcoins, or roughly $70 billion at current prices.
Several managers have made large bets on these companies, with some having stakes of over 5% in Strategy. Other funds, such as American Funds and Capital Group, have smaller holdings but still represent significant exposures to the cryptocurrency market. This exposure is not limited to bitcoin; other cryptocurrencies like ethereum are also being pursued by investment managers.
The rise of publicly traded companies that hold cryptocurrencies has inspired other firms to follow suit. These investments are popping up in funds, including tech-oriented strategies and small-cap funds. The popularity of crypto investments among fund managers may be due to the potential for high returns, but it remains to be seen whether these investments will prove worthwhile.
Investors in retirement accounts do not need an executive order to gain cryptocurrency exposure; many have already been exposed through their mutual fund holdings. As the market continues to evolve, it is essential for investors to stay informed about the investments being made by their managers and to assess the potential risks and rewards of these exposures.
Source: https://www.morningstar.com/funds/is-cryptocurrency-already-hiding-your-retirement-account