Fidelity Offers 401(k) Investors , Access to Bitcoin.
The investment company announced the change to its policy on April 26.
It is the first retirement investments company to allow investors to add bitcoin to their plans.
In addition, the more
than 23,000 employers that
use Fidelity will be able to take
advantage of the crypto policy.
There is growing interest from plan sponsors for vehicles that enable them to provide their employees access
to digital assets in defined
contribution plans, , Dave Gray, Fidelity Investments, via CNBC.
... and in turn from individuals with an appetite to incorporate cryptocurrencies into their long-term investment strategies, Dave Gray, Fidelity Investments, via CNBC.
Fidelity Investments administers over
$11 trillion in assets.
The company ranks as the biggest provider of retirement plans in the U.S.
Its shift in allowing
crypto is expected to
further push the currency
into the mainstream.
Despite this, federal regulators such as the
Department of Labor have urged companies to
"exercise extreme care" in offering crypto
as part of retirement savings.
Excess valuation and the volatile nature of digital currency are two aspects that give regulators pause.
The Department of Labor also warns that crypto can be lost due to a situation as arbitrary as an investor forgetting their password. .
According to Fidelity, the company compiles bitcoin in a digital assets account (DAA).
Fidelity promised "institutional-grade security" when it comes to the stability of bitcoin held in the DAA.
Fidelity's DAA holds both bitcoin and short-term money market investments