Fidelity offers 401(k) investors access to bitcoin, a retirement plan first
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Fidelity Investments New York location
Scott Mlyn | CNBC
Fidelity Investments stated Tuesday that investors will be able to deposit bitcoins in their 401ks. This makes it the first company to provide crypto retirement savings.
Fidelity’s crypto offerings will become available to the 23,000 companies that have Fidelity as their retirement plan administrator, by 2022. Fidelity, the largest national retirement-plan provider with $11.3 trillion under administration is likely to make crypto more mainstream.
Plan sponsors are increasingly interested in vehicles that allow them to give their employees digital assets through defined contribution plans. In turn, this will be a boon for individuals who want to include cryptocurrencies in their long-term investments strategies,” stated Dave Gray, Fidelity Investments’ head of workplace retirement platforms and offerings.
Firm that offers cloud and intelligence MicroStrategyThe first company to include bitcoin as part of their retirement plans will be this employer. The Wall Street Journal reports that newsGet up earlier Monday morning
Regulators have warned against including cryptocurrencies in 401k plans.
Concerns about speculation and volatility, as well as high valuation were cited by the Department of Labor. It also warned about major custodial issues and recordkeeping problems, saying that simply forgetting or losing a password could result in asset loss forever.
Fidelity explained that the Digital Assets Account, a custom-plan account that houses bitcoin and short term money market investments for liquidity. This account can facilitate daily transactions for investors.
Fidelity announced that Bitcoins in the DAA would be stored on Fidelity Digital Assets’ custody platform, to provide institutional-grade security.
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