Fidelity is Now Allowing Bitcoin Investments In Its 401k Plans
CryptoPress
Fidelity will allow its retirement plan clients to invest in Bitcoin, the company announced on Monday.
The move is a historic moment for Bitcoin and cryptocurrency as a whole. Americans saving for retirement will now be able to allocate up to 20% of their 401(k) accounts to Bitcoin.
Fidelity was quick to point out that the new policy is not an endorsement of the cryptocurrency, but more of a reflection of their customer’s needs. Fidelity has been surveying its customers about their attitudes towards Bitcoin since 2018, and they found that there was significant interest among investors with an appetite for risk.
The financial investment firm will first roll out the option to its institutional investors before extending it to retail customers. Americans saving for retirement will be able to allocate up to 20% of their 401(k) accounts to Bitcoin.
“The launch of our cryptocurrency offering is an important step in making digital assets more accessible to investors,” said Tom Jessop, president of Fidelity Digital Assets. “As a firm, we believe that digital assets like cryptocurrencies have a place in well-diversified investment portfolios.”
Fidelity isn’t the first financial service provider to introduce crypto into retirement plans. In August, Morgan Creek Digital co-founder Anthony Pompliano teamed up with Bitwise Asset Management to create a crypto index fund for pension funds, endowments, and foundations.
But regulators aren’t too convinced. The Commodity Futures Trading Commission (CFTC) is concerned about the volatility of digital currencies, and whether or not investors are properly informed of the risks involved with Bitcoin investing. “The CFTC staff will work with Fidelity as they continue their efforts in this space,” a spokesman said.
© 2024 Cryptopress. For informational purposes only, not offered as advice of any kind.
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