Fidelity Investments announced Tuesday that it will begin offering Bitcoin to 401(k) investors, making it the first provider to do so.
By mid-2022, the Bitcoin service will be offered to 23,000 employers who use Fidelity to manage their retirement.
Fidelity is the nation’s largest retirement plan provider, with $11.3 trillion in assets under management, and its choice might help Bitcoin become even more mainstream.
“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,” said Dave Gray, head of workplace retirement offerings and platforms at Fidelity.
Michael Saylor’s Microstrategy Will be the First Employer to offer Bitcoin in Company Retirement Plan
- MicroStrategy will be the first employer to offer Bitcoin as a retirement option.
- This was first revealed by The Wall Street Journal on Monday morning.
- Nonetheless, regulators have cautioned against incorporating “cryptocurrency” into 401(k) plans.
Department of Labor Cited Concerns About Speculation
Concerns regarding speculation and volatility were noted by the Department of Labor.
The Department of Labor cautioned about significant custodial and record-keeping difficulties, stating that losing a password can result in permanent loss of Bitcoin.
According to Fidelity, their offering is a custom account that contains Bitcoin and short-term money market investments to provide the account with the liquidity necessary to execute daily transactions for investors.
Bitcoin in the DAA will be on the Fidelity digital asset custody infrastructure. According to Fidelity this will assure institutional-grade security.
Bitcoin, is an offering in 401(k)s by the largest retirement account provider in the United States.
Another small step for man and a giant leap for Bitcoin.
