Fidelity announces it will offer bitcoin option for 401(k) Retirement Funds

Fidelity Investments recently announced that it will allow investors to deposit bitcoin into their 401(k) plans, making it the first company to do so. CNBC reports that by the middle of 2022, the cryptocurrency will be offered to 23,000 employers who use Fidelity to manage their retirement plans. Fidelity is the nation’s largest retirement-plan provider, with $11.3 trillion in assets under management, and its choice might help crypto become even more mainstream.

Head of workplace retirement offerings and platforms at Fidelity Investments Dave Gray stated, “There is growing interest from plan sponsors for vehicles that enable them to provide their employees access to digital assets in defined contribution plans, and in turn from individuals with an appetite to incorporate cryptocurrencies into their long-term investment strategies.”

MicroStrategy, a cloud and intelligence provider, will be the first company to include bitcoin in its retirement plan. However, regulators have cautioned against using cryptocurrency in 401(k) plans. The Department of Labor encouraged plan fiduciaries to “exercise extreme care” before adding a cryptocurrency option to a 401(k) plan’s investment menu for plan members. Concerns regarding speculation and volatility, as well as excessive value, were also raised by the Department of Labor. Additionally, it issued a serious custodial and record-keeping warning, stating that merely forgetting a password might result in the asset’s permanent loss.

According to Fidelity, the digital assets account (DAA) is a bespoke plan account that keeps bitcoin and short-term money market investments to give the account the liquidity it needs to handle daily transactions on behalf of the customer. The company also states that bitcoin in the accounts will be housed on the Fidelity digital assets custody network to maintain institutional-grade security.

About The Author:

Share this post:

Facebook
Twitter
Reddit
Telegram
LinkedIn
0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments
0
Would love your thoughts, please comment.x
()
x

Join the Alternative Movement

Subscribe to our newsletter to stay up to date on all the news of the day!

 

BRAND OUTREACH

Interested in potentially becoming a sponsor or advertising on our platform?
Please include the relevant details below, and we will reach out to you!

WHAT ARE YOU INTERESTED IN?

DISCOVER THE ALTERNATIVES

PLAYLIST OF THE MONTH

OUR PODCAST PARTNERS
IN one SINGle PLAYLIST

SPOTIFY
PLAYLISTS