Workers whose employers use Fidelity Investments to administer their retirement plans will soon be able to invest their retirement savings in Bitcoin, as long as their employer allows it.
Fidelity says it plans to give companies whose retirement plans it administers the option of offering Bitcoin on their investment menus mid-2022.
The first firm to take advantage of the new offering is MicroStrategy, a provider of business intelligence, mobile software and cloud-based services that Fidelity says will offer Bitcoin in its retirement plan later this year.
Plan sponsors will be able to set limits on the amount of Bitcoin employees will be able to contribute, according to the company.
“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,” Dave Gray, head of workplace retirement offerings and platforms at Fidelity, said in a statement. “Fidelity has been at the forefront of embracing Bitcoin among mainstream financial services firms."
The company says it began Bitcoin mining in 2014. In 2018, Fidelity launched Fidelity Digital Assets, well ahead of rivals including JPMorgan and Morgan Stanley.
Earlier this month, the firm announced that it’s rolling out two new thematic exchange-traded funds — Fidelity Crypto Industry and Digital Payments ETF and Fidelity Metaverse ETF, as reported.
But Fidelity’s push into offering Bitcoin in 401(k) plans may be met with hesitation from employers.
Last month, the Department of Labor warned that 401(k) plan fiduciaries should “exercise extreme care” before including cryptocurrencies plan menus, and those that do should expect extra scrutiny, as reported.
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