Interest in 401(k) cryptocurrency investment is rising, especially among younger employees. According to a 2022 Charles Schwab survey, nearly 50% of Gen Z and millennial workers expressed a desire to invest in cryptocurrencies through their 401(k) plans (CNBC, 2022). While this generational demand grows, employers and HR teams face a complex regulatory environment and questions around plan design, risk, and compliance. For more detailed context on plan rules and compliance, see our 401(k) resources.

Employers must weigh these trends against minimal actual adoption rates and Department of Labor (DOL) guidance. As of late 2024, the GAO reported that crypto asset investment options represented well under 1% of assets in the 401(k) plans and self-directed brokerage windows it surveyed (GAO, 2024).

This growing engagement comes as average 401(k) balances hit record highs, making diversification and new asset options a timely conversation.

The Short Answer: Can You Buy Cryptocurrency in Your 401(k)?

It’s one of the most common questions today: Can I invest in Bitcoin or other digital assets through my 401(k) plan?

The reality is that direct coin purchases, such as buying Bitcoin outright, are not standard features in most employer-sponsored plans. Instead, when cryptocurrency exposure is available, it typically comes through plan-approved investment vehicles like exchange-traded funds (ETFs) or via self-directed brokerage windows. Providers like Fidelity and ForUsAll have introduced such options, although the vast majority of plans do not offer them by default.

Younger workers are driving this conversation, with nearly half of Gen Z and millennials expressing interest in crypto options. According to the U.S. Government Accountability Office, crypto investments remain a rarity in the 401(k) market, with surveyed providers reporting that such options represented well under 1% of plan assets in 2024 (GAO, 2024).

The marketplace is shifting as the Department of Labor updates its approach to crypto in retirement plans, so available options may expand in the near future.

For further details on plan features and compliance, visit our 401(k) resources.

What “Buying Crypto” Usually Means in a 401(k)

When it comes to cryptocurrency in retirement plans, “buying crypto” rarely means purchasing coins directly. Instead, most 401(k) plans, if they offer exposure at all, do so through a few defined channels:

• Self-Directed Brokerage Window Crypto: Some plans allow participants to use a brokerage window to access a broader array of investments, occasionally including cryptocurrencies. About 40% of 401(k) plans offer such brokerage windows, though not all include crypto options (CNBC, 2025).

• ETF or Fund Exposure: Rather than holding coins, many plans permit investment in funds or ETFs that track digital assets. For example, the Michigan Retirement System invested in Bitcoin and Ethereum ETFs, but these allocations represented less than 1% of their total portfolio.

• Plan-Approved Vehicles: Some providers, like Fidelity and ForUsAll, offer dedicated crypto windows or funds, typically with strict caps (e.g., 5–20% of a participant’s portfolio).

Most plans offering crypto exposure do so with strict participant contribution caps and extra layers of participant education and risk disclosure. For perspective, Bitcoin briefly dipped below $85,000 in 2025 after a record high, illustrating the risk profile of these assets.

For a deeper dive on plan design and compliance, see our resource on How to Offer Crypto in a 401(k) (Without Breaking ERISA).

What to Check in Your Plan (Employee-Friendly Guide)

If you’re curious whether your employer’s plan allows for crypto investments, here’s how to check:

1. Log into Your 401(k) Portal: Search for options like “brokerage window,” “digital assets,” or “alternative investments.”

2. Review Plan Documents: Check the summary plan description or investment options for mentions of cryptocurrency, ETFs, or self-directed brokerage.

3. Ask HR or Plan Administrator: If it’s unclear, reach out directly to HR or your plan administrator and ask if crypto or related funds are available.

Even if crypto isn’t currently offered, expressing interest helps HR gauge demand. Notably, ForUsAll reports about 12.5% of eligible participants allocated funds to cryptocurrencies when given the option (InvestmentNews, 2022).

Crypto investments, when available, are always optional; plan sponsors are advised to provide transparent opt-in and opt-out procedures.

If you want to formally request this option, see our copy-paste email template for HR.

Fees, Custody, and Access in Simple Terms

Cryptocurrency options in 401(k) plans often come with unique fee considerations and security protocols.
Expect higher fees and a focus on secure custody.

These can include explicit management fees plus extra charges for secure custody arrangements. Plan providers may charge additional fees for crypto-related investments, and custodial arrangements are critical to safeguarding digital assets from theft or loss. All fees and risks should be disclosed in your plan materials, and participant education is essential to making informed decisions.

For more guidance on fees and custody, visit our 401(k) resources.

Risks and What Not to Assume

While the appeal of high returns is strong, crypto investment risks in 401(k) plans cannot be overlooked.
Cryptocurrencies are highly volatile and not suitable for every retirement investor.

Amy Arnott, a portfolio strategist at Morningstar, warns, “People saving for retirement should probably be even more conservative, because adding crypto to a 401(k) plan would significantly increase the risk that your retirement nest egg could suffer a large loss at the wrong time” (CNBC, 2025).

Regulatory uncertainty, security risks, and valuation challenges remain ongoing concerns. Regulators note that security lapses and difficulty in consistently valuing digital assets create distinct risks for 401(k) participants.

For employers, see our guide on risk controls for crypto in 401(k) plans.

Employee Box: Copy-Paste Email to HR

If your plan doesn’t offer crypto but you and your colleagues are interested, making a formal request can help HR gauge demand. To strengthen your case, highlight your interest in diversification within retirement plan options.

We’ve created a ready-to-use copy-paste email template for HR to simplify the conversation. This template includes subject line options and clear language for requesting digital asset investment options.

Sponsor Box: How HR/Finance Can Evaluate Responsibly

For HR and Finance leaders, the decision to include 401(k) crypto regulations and crypto options comes with increased scrutiny.
The DOL’s current stance (as of May 2025) is neutral, neither endorsing nor disapproving plan fiduciaries who include cryptocurrency in their investment menu, but emphasizing context-specific prudent evaluation (pymnts.com, 2025; Mercer, 2025).

This means HR/Finance must conduct thorough due diligence, considering all relevant facts and circumstances, and document every step in their governance process. Ongoing monitoring and regular participant education are essential for maintaining compliance and supporting participant success.

For a practical checklist, see our policy, process & provider guide for employers.

FAQs: Crypto in 401(k) Plans

Can I invest in Bitcoin directly through my employer’s plan?
Usually not, direct coin purchases are rare. Most exposure is through funds, ETFs, or brokerage windows.

Are crypto options common in 401(k) plans?
No. As of late 2024, GAO found that crypto asset options represented well under 1% of assets at surveyed 401(k) providers, despite significant employee interest (GAO, 2024).

What risks should I consider?
Volatility, regulatory uncertainty, and security are primary concerns. Some cryptocurrencies may lack sufficient liquidity, impacting the ability to quickly buy or sell holdings. Experts recommend caution.

For more background, see Why Is There Crypto in My 401(k)?

CTAs and Compliance Footnote

If you are an employer considering crypto options, or an employee seeking education and clarity, our team is available to help.
Get started (for employers)

This content is for informational purposes only and is not legal, tax, investment, or compliance advice.

References

• Arnott, A. (2025, Jan 8). Crypto options in 401(k) plans. https://www.cnbc.com/2025/01/08/crypto-options-in-401k-plans-heres-what-you-need-to-know.html

• Charles Schwab. (2022, Nov 1). Nearly half of Gen Z and millennials want crypto in 401(k)s. https://www.cnbc.com/2022/11/01/schwab-nearly-half-of-gen-z-and-millennials-want-crypto-in-401ks.html

• Government Accountability Office. (2024, Nov). 401(k) Plans: Industry Data Show Low Participant Use of Crypto Assets. https://www.gao.gov/assets/gao-25-106161.pdf

• Mercer. (2025, May). DOL axes earlier warning about cryptocurrency in 401(k) plans. https://www.mercer.com/insights/law-and-policy/dol-axes-earlier-warning-about-cryptocurrency-in-401-k-plans/

• PYMNTs. (2025, May 29). Labor Department Rescinds Guidance About Crypto and 401(k) Investment Menus. https://www.pymnts.com/cryptocurrency/2025/labor-department-rescinds-guidance-about-crypto-and-401k-investment-menus/

• InvestmentNews. (2022, Nov 7). Platform lets retirement savers access crypto investments. https://www.investmentnews.com/retirement-planning/platform-lets-retirement-savers-access-crypto-investments/228869