Fidelity Investments Inc. has moved to allow investors to put a Bitcoin (CRYPTO: BTC) account in their 401(k) retirement savings.
What Happened: Fidelity will be the first major retirement plan provider to offer the option of adding Bitcoin to retirement savings, according to a Tuesday report from The Wall Street Journal.
The option is expected to come into effect later this year when the 23,000 companies that use Fidelity for their retirement plans will be able to offer Bitcoin savings. The plan will let investors allocate up to 20% of their 401(k) savings to Bitcoin.
“We have seen growing, organic interest from clients especially those with younger employees,” said Dave Gray, head of workplace retirement offerings and platforms at Fidelity.
“We fully expect that cryptocurrency is going to shape the way future generations think about investing for the near term and long term.”
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At first, the allocation to crypto will be limited to Bitcoin exclusively, but Gray expects other digital assets to be added to the mix in the future.
As per the report, around 5% or less of the Bitcoin account will be held in a short-term money-market fund to provide liquidity to facilitate daily transactions. Fees are expected to be within the 0.75% and 0.9% range, without counting trading costs.
Last week, Fidelity launched the Fidelity Metaverse ETF (NASDAQ: FMET) and the Fidelity Crypto Industry and Digital Payments ETF (NASDAQ: FDIG) as part of a wider strategy to embrace digital assets.
Price Action: According to data from Benzinga Pro, Bitcoin was trading at $40,500, up 3.08% over the last 24 hours.
Photo courtesy: Marco Verch on Flickr
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