- Mushroom Alpha
- Posts
- Act like a degen with your 401(k) account
Act like a degen with your 401(k) account
Buy Bitcoin with your retirement savings?
MUSHROOM ALPHA
After yesterday's excitng Twitter news we need a break. No we don't. We are back at it with today's news drop.
Topics:
Fidelity says Yes to Bitcoin
Who is Chris Dixon
Quick Links
Fidelity offers Bitcoin for 401(k) accounts
This summer Fidelity will allow you to buy Bitcoin in your 401(k) account. People kept asking them about crypto options so they said YOLO and built it. MicroStrategy is one of the first companies signed up and many others are in “talks” with Fidelity.
Each company will be limited to a 20% cap of employee funds in Bitcoin. Fees are between 0.75% and 0.90% of assets. There will also be a “fair” trading fee whatever the hell that means.
This is big time news for the retirement investment sector. Americans hold about $7.7 trillion in 401k plans as of December 31, 2021.
If 20% of that amount flowed into Bitcoin it would amount to $1.54 trillion which is about double Bitcoin’s current market cap. Crazy!
Fidelity is also the largest retirement plan provider in America so their move could create a domino effect in the industry.
Prediction 1: Big players like Fidelity, T Rowe Price, and Vanguard will roll out more crypto options in the near future.
Prediction 2: The above players will also gobble new Crypto IRA startups in the coming years.
Prediction 2: Long Bitcoin!
Keep your eyes peeled in this space as new players are entering rapidly:
Who is Chris Dixon?
How did a nerdy kid from Springfield, Ohio become the top crypto investor in the world?
Let’s dive in.
As a child Chris was obsessed with Atari and got into programming early. Ok so were we but that only got us to writing this newsletter. WTF?
Post college he spent a few years coding for high-frequency trading firm Arbitrade followed by a stint at Bessemer Venture Partners.
The first run working at a VC firm bored him enough to strike out on his own. He then founded SiteAdvisor (acquired by McAfee) and Hunch (acquired by eBay).
His last move would be his biggest. In 2012 Chris joined a16z as general partner and never looked back.
His investment home runs:
Personally invested in Warby Parker, Pinterest, and Stripe
Found Coinbase and bet on it early - 60x banger on IPO day
Invested in Oculus VR, Uniswap, Dapper Labs (NBA Top Shot), Avalanche, OpenSea, and Yuga Labs
Raised $2.2 billion crypto fund in 2021
Raise $4.5 billion crypto fund in 2022
What’s next?
Love this quote he dropped in a Forbes interview:
“My job is not to predict the future,” he says. “My job is to be smart enough to know who the smart people are who will.”
Great interview he gave recently on The Verge here.
Quick Links
Robinhood is having layoffs - Sucks, we have been there and know how it feels. How will this affect the velocity of what they are trying to do in crypto? They are saying growth is down.
The first DeFi Mortgage Loan - This could be the tip of the iceberg for the mortgage industry to adopt DeFi.
Dallas Fort Worth, a city in hyper growth is now the first to mine bitcoin - How did Miami not beat them to the punch?
Funding Announcements:
We beat down hump day victoriously. Thursday here we come.
Mushroom fact of the day. Did you know there are over 10,000 known types of mushrooms?
Hit Reply to let us know how we are doing! We would love to hear from you.
Was this email forwarded to you? Sign up here.