Fidelity Pushes Bitcoin Further Into Mainstream by Offering It for Pension Plans

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Alex Dovb­nya

Mutu­al fund giant Fideli­ty Invest­ments will allow allo­cat­ing retire­ment funds to Bitcoin 

Mutu­al fund giant Fideli­ty Invest­ments is on track to allow cus­tomers to add Bit­coin to their 401(k) sav­ings plans, accord­ing to a recent report pub­lished by The New York Times.

The move could poten­tial­ly be a water­shed moment for cryp­tocur­ren­cy adop­tion in the U.S. giv­en that Fideli­ty is the num­ber one provider of pen­sion plans in the coun­try. The Boston-based invest­ment giant man­ages the retire­ment sav­ings of more than 20 mil­lion people. 

There is grow­ing demand for Bit­coin among plan spon­sors, accord­ing to Fidelity’s Dave Gray. 

Fideli­ty plans to start offer­ing Bit­coin-hold­ing 401(k)s lat­er this year. It will charge a fee of up to 0.9 percent.

 It is worth not­ing that sav­ings plans are high­ly reg­u­lat­ed, which means Fidelity’s new ini­tia­tive will like­ly attract plen­ty of reg­u­la­to­ry scruti­ny. Last month, the U.S. Depart­ment of Labor warned against putting cryp­to into people’s 401(k)s.      

More­over, the adop­tion of the new prod­uct will most­ly depend on the will­ing­ness of employ­ers to add Bit­coin to their work­ers’ retire­ment funds.

MicroS­trat­e­gy, the busi­ness intel­li­gence firm that is known as the biggest cor­po­rate hold­er of Bit­coin, has already signed onto the ambi­tious plans.

Fideli­ty was one of the first major finan­cial firms to dip its toes into cryp­to. The Boston-based com­pa­ny start­ed min­ing Bit­coin all the way back in 2014. In Octo­ber 2018, it opened a sep­a­rate cryp­tocur­ren­cy unit. n 2019, Fideli­ty also delved into the cryp­to cus­tody busi­ness, which CEO Abi­gail John­son laud­ed as a “big suc­cess.” Last Novem­ber, its Cana­di­an sub­sidiary became the first reg­u­lat­ed Bit­coin cus­to­di­an in Cana­da.        

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