This is a good question, and the answer is yes if the paint is clear, and no if it is opaque. Remember, the beads have to have the tops exposed to reflect, so encapsulating them with paint would do nothing except make the coat of paint last longer. For an opaque paint it is best to sprinkle the beads on top of wet paint, then you will get the results you are looking for.

Now for clear paint, you can mix the beads in, but you cannot encapsulate them. In other words, don’t cover the top of the beads with clear. Make the coat thin enough to where the bead is exposed. That way light can enter, be concentrated, and then returned to the light source. A process known as retro-reflectivity.