From BitcoinMagazine.com…
Fidelity Investments will allow investors to allocate part of their 401(k)s into bitcoin later this year, The Wall Street Journal first reported.
Fidelity, which manages employee benefit programs for nearly 23,000 businesses, is set to become the first major retirement-plan provider to allow bitcoin exposure in retirement accounts. The company has $2.7 trillion in assets under management in its retirement services division alone.
The investment giant will bring the new option to its clients through its new workplace digital assets account (DAA) launched on Tuesday, according to a press release.
“There is a need for a diverse set of products and investment solutions for our investors,” Dave Gray, Fidelity’s head of workplace retirement offerings and platforms, told WSJ. “We fully expect that cryptocurrency is going to shape the way future generations think about investing for the near term and long term.”
The plan is to let investors allocate up to 20% of their retirement accounts to bitcoin, however, plan sponsors could end up lowering that threshold at their discretion. Gray told WSJ the offering would be limited to bitcoin and not contemplate other cryptocurrencies from the start.
“The DAA is a custom plan account that holds bitcoin and short-term money market investments to provide the liquidity needed for the account to facilitate daily transactions on behalf of the investor,” according to the release. “Bitcoin in the DAA will be held on the Fidelity Digital Assets custody platform to ensure institutional-grade security
