Warren Buffett hates cryptocurrency, but should it be in my retirement investments? Experts weigh in

Times they are a’changin’, and the way pre-retirees think about retirement and their portfolios doesn’t necessarily look like how past generations approached it. 

Sure, many in pre-retirement are likely to heed conservative financial advice, such as that from legendary investors Warren Buffett and the late Charlie Munger. Both men have been skeptical of crypto and abide by the motto that holding steady and being patient are key to successful investing.

But with crypto becoming more mainstream, especially since President Donald Trump took office, is this cohort missing something and potentially leaving money on the table?

Jonathan Rose, CEO of BlocktrustIRA, explained that Buffett’s aversion to cryptocurrency stems directly from his value investing philosophy, as he believes investments should produce something tangible or generate cash flow.

“He has consistently stated that cryptocurrencies don’t produce anything,” said Rose, adding that this perspective, while proven successful for traditional assets, may face new challenges in an increasingly digital economy.

While older Americans are warming up to crypto, the amount they invest in the asset class remains meager: 24% of Gen Xers own crypto, while this number dwindles to 8% for boomers, according to a YouGov study.

In comparison, “millennial investors are also more likely to own crypto  (36%) than to have a retirement account (34%),” the study found.

Against this background, Americans nearing retirement may wonder whether including crypto in their portfolios can help boost their nest egg, and if so, at what levels.

A changing landscape

Since President Trump took office, there has been a significant shift in the cryptocurrency world, primarily due to a pro-crypto administration, which represents a stark contrast to the previous administration’s stance on digital assets.  These changes are also transforming approaches to retirement and the perception of this asset class.

Bitcoin, the largest digital asset by market capitalization, broke a new record on May 22, hitting an all-time high of $111,814. To put this in perspective, that’s a 60% jump from a year ago.

Coinbase, the largest cryptocurrency exchange, entered the S&P 500 last month, further solidifying the fact that cryptocurrency is entering the mainstream zeitgeist.

And of course, crypto exchange-traded funds (ETFs), which were approved in January 2024 (bitcoin and ethereum at the moment), have recorded massive inflows.

Consider this: the most successful bitcoin ETF, BlackRock iShares Bitcoin Trust ETF  surpassed $70 billion in assets, “the fastest ETF to ever hit that mark in only 341 days, which is 5x faster than the old record held by GLD of 1,691 days,” Bloomberg analyst Eric Balchunas posted on X on June 9.

And in May, the Department of Labor rescinded a Biden-era guidance, which “discouraged fiduciaries from including cryptocurrency options in 401(k) retirement plans.”

Rose noted that as economic uncertainty persists globally, crypto—particularly bitcoin—is increasingly viewed by some investors as a “safe haven” asset class, with similarities to gold. Both have achieved remarkable milestones in the first half of 2025.

 “As crypto continues its maturation as an asset class, those approaching retirement may benefit from carefully considering its role in their portfolios—not as a replacement for traditional retirement planning, but as a potential complement to existing strategies in an increasingly digital financial landscape,” he said.

He also argued that investors who dismiss crypto entirely may be missing an opportunity to diversify their portfolios. Just as previous generations eventually embraced new asset classes, today’s retirement planners should at least consider how a thoughtful allocation to digital assets might fit within their financial future.

How much crypto should pre-retirees include in their portfolios?

Well, advice varies, and simply put, it depends on individuals’ risk appetite. That said, several experts recommend allocating 1% to 5% of a diversified portfolio to crypto.

At the same time, many experts also urge caution and risk awareness, due to the volatility of digital assets.

“At this stage in life, capital preservation is king, so exposure should be minimal and strategic,” said Chunyang Shen, co-founder of Jarsy Inc.

Shen said that a prudent allocation might be 1% to 5% of the total portfolio in digital assets, such as bitcoin or ethereum, depending on the individual’s risk tolerance and other holdings.

This way, retirees can get potential upside without putting financial stability at risk if the market gets volatile, which crypto often does, he said.

For less cautious investors, having clear knowledge of crypto cycles, alternative income sources, or substantial assets is necessary to justify a higher allocation.

“Striking the right balance between prudence and innovation is vital, especially when preserving income eclipses the need for aggressive returns,” he added.

Are there historical equivalents?

The cautious approach to digital assets (or even resistance to investing in the asset class) many boomers have has historical precedents.

Yet, as Rose noted, those who dismiss cryptocurrency entirely may be missing an opportunity to diversify.

“Just as previous generations eventually embraced new asset classes, today’s retirement planners should at least consider how a thoughtful allocation to digital assets might fit within their financial future,” he said.

For instance, there was considerable skepticism surrounding index funds, with many arguing that actively managed funds were safer and offered a better yield.

“Over time, we’ve seen that it’s actually very difficult to beat the market consistently over the long haul, and many people love index funds for their built-in diversification and low fees,” said Ted Rossman, senior industry analyst at Bankrate.

What about crypto ETFs?

Bitcoin and Ethereum ETFs might be the way to go for curious but cautious pre-retirees, as these funds offer several advantages for this crowd.

First, individuals do not need to buy assets directly or have a crypto wallet, simplifying the process while allowing exposure to crypto.

Additionally, ETFs are highly regulated, offering an extra layer of security.

Shen noted that retirees stand to gain from the transparency, liquidity, and institutional safeguards  ETFs offer.

“Their nature of being linked to brokerage or retirement accounts that investors already have also makes crypto more accessible and less intimidating,” he said.

 There are also crypto IRAs, which are self-directed retirement accounts that offer tax advantages.

This can provide the dual benefits of crypto exposure and potential tax advantages- a regulatory evolution which represents a turning point for retirement investors, Rose said,

“Crypto IRAs have emerged as one of the most popular vehicles for those seeking to incorporate digital assets into their retirement strategies while maintaining compliance with IRS guidelines,” he added.

Bottom line

Many experts said that when it comes to individuals who retire today, they should have a balanced view of crypto.

“Yes, they are risky, but they are also highly growth-potential,” said Bert Hofhuis, founder of BankingTimes, adding that they need to keep in mind their risk tolerance and investment objectives. “That is striking the balance between innovation and safety, and remembering that financial markets change.”

Correction: The name of an expert source in the story was misspelled when it originally appeared. The correct spelling is Chunyang Shen. The story has been corrected above.

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