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Many mutual funds and ETFs indirectly expose savers to cryptocurrency through companies like Strategy (MicroStrategy), Coinbase, and mining firms.
Some funds hold crypto-focused ETFs or firms with large Bitcoin or Ethereum treasuries, giving 401(k) investors hidden exposure.
For retirement savers, this brings both opportunity and risk. Crypto adds diversification but also introduces volatility into portfolios.
For most investors, the idea of cryptocurrency showing up inside a retirement plan feels like a new development. In 2019, an executive order under President Donald Trump opened the door for alternatives, including private assets and digital currencies, to appear in 401(k)s.
Yet the reality is that many retirement savers may already have indirect exposure to crypto without even knowing it. Some widely held mutual funds and exchange-traded funds (ETFs) have quietly added companies with deep ties to the cryptocurrency market.
While most mutual funds cannot directly hold Bitcoin or Ethereum, managers have found other ways to gain exposure. For years, they have bought shares of publicly traded companies with significant digital asset holdings, whose business models benefit from crypto adoption. These holdings mean that even diversified retirement accounts may carry hidden crypto exposure.
A well-planned Crypto Investment strategy can balance risk and reward effectively. The most visible example is Strategy (formerly MicroStrategy). In August 2020, the company became the first major corporation to adopt Bitcoin as its primary treasury asset. Fast forward to 2025, and Strategy holds more than 600,000 bitcoins worth around $70 billion.
Many are exploring Cryptocurrency Retirement Investment as part of future planning. That represents over 60% of its market capitalization, effectively making the stock a leveraged bet on Bitcoin. Its price largely mirrored Bitcoin until 2024, when growth expectations sent the shares soaring well beyond the underlying cryptocurrency.
Several well-known managers have made substantial allocations to Strategy. Dennis Lynch of Morgan Stanley, who also advises Transamerica Capital Growth (IALAX), has more than 5% of his portfolio in the stock, making it a top-10 holding. His concentrated, growth-oriented approach meant that early bets on Strategy grew even larger during its rally.
In terms of dollar exposure, American Funds strategies, such as Growth Fund of America (AGTHX) and Fundamental Investors (ANCFX), also rank high. While their positions are closer to 1% of assets, the parent company, Capital Group, has collectively invested over $6 billion into Strategy.
Manager Mark Casey spearheaded the move back in 2021, arguing that Bitcoin offered superior store-of-value potential compared with gold. His thesis suggested that if Bitcoin captured just a small portion of the world’s total wealth, currently estimated at $600 trillion, it could be worth $500,000 per coin.
Also Read: Bitcoin Price Falls to $111,856 After Whale Sells 24,000 BTC
Strategy’s bold strategy has inspired other public firms to stockpile cryptocurrency. Mara Holdings, Bullish, Riot Platforms, Metaplanet, and Trump Media & Technology Group each hold more than 15,000 bitcoins.
These companies have begun appearing in funds ranging from SPDR Galaxy Transformative Tech Accelerators ETF (TEKX) to VanEck Onchain Economy ETF (NODE).
Some managers have even ventured into international plays. For example, Capital Group’s Smallcap World Fund (SMCWX) has invested in Japanese Bitcoin treasury Metaplanet.
Experts advise that Longterm Crypto Investment requires patience and diversification. Other small-cap specialists at Fidelity, Invesco, and Dimensional have taken positions in mining companies such as Mara and Riot.
While Bitcoin remains the most popular treasury asset, some firms are experimenting with other cryptocurrencies. BitMine Immersion Technologies (BMNR) stunned the market in mid-2025 by purchasing more than $6 billion worth of Ethereum within six weeks, making it one of the largest corporate holders of the token. High-profile investors like Cathie Wood’s ARK Invest quickly added BMNR to multiple funds.
Another channel for crypto exposure comes through ETFs. Though many mutual funds cannot directly hold cryptocurrency trusts, some have significant allocations. Kinetics Internet Fund, for instance, has placed over 50% of its assets in Grayscale’s Bitcoin Trust products (GBTC and BTC Mini Trust).
Meanwhile, several BlackRock funds have smaller positions in the firm’s iShares Bitcoin Trust (IBIT), including its bond-focused Strategic Income Opportunities Fund (BASIX), which holds more than $100 million of the ETF.
Funds have also sought exposure through the infrastructure companies that enable crypto trading. Coinbase, the largest US crypto exchange, is a favorite of ARK Invest and other growth-oriented managers.
Block (formerly Square) is another common pick, given its ownership of Bitcoin and integration of crypto trading in its Cash App platform—mutual funds from T. Rowe Price and Morgan Stanley list Block among their holdings.
For the average 401(k) investor, the implication is clear: crypto exposure is no longer a future concept; it’s already here. Through holdings in publicly traded crypto treasuries, mining firms, ETFs, exchanges, and payment companies, many widely held funds already carry indirect stakes in digital assets.
This exposure is usually modest in diversified funds, but in more aggressive growth strategies, it can be meaningful. While some see this as a chance to benefit from crypto’s long-term upside, others worry it introduces unnecessary volatility into retirement accounts.
Cryptocurrency is making its way into retirement savings sometimes explicitly through self-directed accounts, and other times indirectly via mutual funds and ETFs. Whether this is a positive or negative depends on perspective.
For investors seeking diversification and exposure to innovation, these hidden allocations could be a bonus. For those who prefer stability in retirement planning, it’s a reminder to dig into fund holdings and understand exactly what risks their portfolios carry.
Either way, one thing is sure: cryptocurrency has already arrived in retirement accounts, and its role is only likely to grow.
1. Can I directly hold Bitcoin in my 401(k)?
Generally, no. Most employer-sponsored plans don’t allow direct crypto holdings, but some specialized providers offer crypto-enabled retirement accounts.
2. How does crypto sneak into mutual funds?
Fund managers buy shares of companies like Strategy, Coinbase, or Block, which hold or trade digital assets, giving investors indirect exposure.
3. Are there funds heavily invested in crypto?
Yes. For example, the Kinetics Internet Fund has over 50% of its assets in Grayscale’s Bitcoin Trust products.
4. Is crypto in retirement accounts safe?
It depends. While regulated funds reduce custody risks, crypto-linked stocks remain volatile and can swing retirement balances sharply.
5. Should I worry if my retirement fund has crypto exposure?
Not necessarily. For most diversified funds, exposure is modest. But if you prefer stability, check fund holdings and adjust allocations accordingly.
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Disclaimer: Analytics Insight does not provide financial advice or guidance on cryptocurrencies and stocks. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. This article is provided for informational purposes and does not constitute investment advice. You are responsible for conducting your own research (DYOR) before making any investments. Read more about the financial risks involved here.
