Fidelity Investments has become the first retirement plan provider to allow workers to allocate a portion of their retirement savings to bitcoin inside a 401(k) plan.
The Boston-based company announced that it is launching the workplace Digital Assets Account that will allow workers to invest in bitcoin if their employers use Fidelity to administer their retirement accounts.
MicroStrategy will be the first company to add the option to its 401(k) plan. The new venture will be “available broadly to employers mid-year,” Fidelity says.
CNBC reports that the new account will be available to 23,000 employers at that point.
In a press release, Dave Gray, head of workplace retirement offerings and platforms at Fidelity Investments, explained the impetus behind Fidelity’s decision to offer a bitcoin option in its 401(k) plans:
“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.”
Fidelity says the new offering is targeted toward investors “who are comfortable with the risks and volatility of cryptocurrency.”
The Digital Assets Account — which will be part of the core lineup within a 401(k) plan — holds bitcoin and short-term money market investments. Fidelity says plan sponsors will determine “employee contribution and exchange limits into the account.”
This is the second time this month that Fidelity has made a splash by unveiling new opportunities to invest in cryptocurrency. For more, check out “Fidelity Rolls Out New Cryptocurrency, Metaverse ETFs.”
Unsure about whether cryptocurrency is right for you? Money Talks News founder Stacy Johnson runs down the basics in “Ready to Try Cryptocurrency? Here’s Everything You Need to Know.”