Bitcoin

Fidelity’s Clients Could Add Bitcoin To Their 401(k) Accounts Soon

Fidelity’s Clients Could Add Bitcoin To Their 401(k) Accounts Soon

Fidelity, America’s largest 401(k) plan provider, has announced that its clients and participants would be able to invest a portion of their retirement savings in Bitcoin. Therefore, millions of individuals may be able to invest in BTC without having to register an account on a cryptocurrency exchange.

Depending on the employer and the amount invested, the account fee will range from 0.75% to 0.90% of assets. According to the firm, a separate trading charge, which has yet to be decided, will be “competitively priced.”

“We started to hear a growing interest from plan sponsors, organically, as to how could Bitcoin or how could digital assets be offered in a retirement plan.” said Dave Gray, Fidelity’s head of workplace retirement offerings and platforms.

“Fidelity believes that blockchain technology and digital assets are going to be a much larger part of financial industry’s future,” he added.

Digital assets and BTC accounts will be widely available by the middle of this year, according to Fidelity. It will be available alongside more traditional mutual funds in the 401(k) investment option, with members able to dedicate a portion of their contributions to the BTC account. That proportion will be limited: the employer will set the upper limit, but the platform will not enable allocations of more than 20%, albeit that number may change.

The action by Fidelity comes a month after the Labor Department raised concerns about cryptocurrency being included in retirement plans.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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