Fidelity to reportedly allow 401(k) retirement savings accounts to invest in Bitcoin

Fidelity Investments, a US-based retirement plan provider, will allow 401(k), retirement savings account holders to invest directly in Bitcoin (BTC).

The new Bitcoin retirement plan will be available later in the year. According to The Wall Street Journal, it will allow more than 23,000 companies to manage their retirement accounts and offer Bitcoin investment options for customers.

If employers approve the proposal to add Bitcoin to their savings accounts, it will allow retirement-savers to allocate as much as 20% in Bitcoin. Fidelity is currently in talks with several employers who use its services. MicroStrategy reportedly has already accepted the BTC investment plans.

It is not a new idea to allow retirement savings accounts investors in Bitcoin. In June 2021, ForUsAll, another retirement plan provider, partnered up with Coinbase to provide BTC exposure for its retirement savings account holders. Fidelity’s interest would certainly elevate the idea to mainstream status.

Related: Fidelity – Bitcoin is a “superior money”

Fidelity Investments’ head of workplace retirement options and platforms, Dave Gray, stated that there was high client demand for Bitcoin exposure for 401(k), plan holders. He stated:

“We began to hear an organic increase in interest from plan sponsors as to how Bitcoin and digital assets could be offered within a retirement plan. We are confident that cryptocurrency will change the way future generations view investing in the short and long-term.

Gray noted that the company will support Bitcoin initially, but it would also add crypto assets to the investment options depending on client demand.

Fidelity, which has more than $4 trillion in assets under management and was one of the first mainstream financial institutions to venture into crypto when it launched its digital asset arm in 2018. The investment company has been a major advocate for Bitcoin since then.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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