Fidelity Investments will allow it’s 401(k) account holders to opt for a newer Bitcoin retirement investment plan.
Once the plan is launched it will allow over 23,000 companies in connection with Fidelity Investments to control their 401(k) accounts to get exposure to Bitcoin investment options that will be offered by the firm.
In June 2021, ForUsAll, which is also a retirement plan provider, collaborated with Coinbase to offer BTC exposure to its clients. However, Fidelity Investments, a much larger institution will surely make a mental impact among account providers and holders to consider such options.
If employers give approval to account holders to be able to commit 20% of their 401(k) investments. Fidelity is in talks with its service users to get consent for the same. Reports suggest that MicroStrategy has agreed to the BTC investment plans
An official at Fidelity investments said that the decision comes after high client demand.
“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. We fully expect that cryptocurrency is going to shape the way future generations think about investing for the near term and long term.”Dave Gray, head of workplace retirement offerings and platforms at Fidelity Investments.
Apart from this initial support for the world’s largest cryptocurrency, other crypto assets will soon be added to the investment options offered by the company. The company manages over $4 trillion in assets and is among the few traditional institutions to submerge into the crypto space. The retirement plan provider established a dedicated digital asset company in 2018.