How to Acquire Cryptocurrency with Solo 401K

[Brandon H.]

Hi BP,

I am looking to invest in cryptocurrency using my Solo 401K, and registered for an institutional account (via LLC owned by Solo 401K) with a few exchanges. It has been several months since doing so, and my accounts are still pending approval. Are there any alternative ways to acquire cryptocurrencies via a Solo 401K? Sitting on the sideline while the crypto market skyrockets has been very frustrating.


Thanks.

[Brian Eastman]

@Brandon H.

Unfortunately, your situation is not unique.  The crypto exchanges are exceedingly busy opening new accounts as fast as they can, and definitely focusing on the low-hanging fruit, which is individuals.  Institutional accounts are slow to setup, and none of the exchanges really provide a means to contact someone to check on the status of an application or obtain help.

You have to establish an institutional exchange account that ties back to the Solo 401(k) in some fashion, either directly in the 401k trust or via a LLC that is wholly owned by the 401(k). There is no other means to properly put the 401(k) plan money to work. You might try an account directly via the 401(k) trust, but that would only work if you also have a direct trust-held bank account. I'm not sure if the LLC helps or hinders in the 401(k) space relative to cryptocurrency, as we typically do not place a LLC inside the 401(k) unless there is a distinct need to segregate plan assets from each other for liability purposes.

My understanding is that Genesis is the best platform for such institutional accounts, but that is just anecdotal.