According to a report from New York Times, Fidelity Investments, an American multinational financial services company that is also the largest 401(k) provider in the United States, will allow customers to place their retirement funds in Bitcoin, the largest cryptocurrency in the world. However, their employers must also accept the same.
Fidelity plans to expose millions of customers to Bitcoin
Fidelity plans to allow millions of customers to invest directly in Bitcoin without having to worry about opening an account at a cryptocurrency exchange. The feature will be implemented through its new digital asset account. Fees for account holders will be between 0.75% and 0.90% of assets, which will also depend on various other factors such as the employer and the amount invested. Additionally, additional trading fees will also be applicable for digital asset account openings which remain undisclosed for now but will be “competitively priced”.
We started to hear growing interest from plan sponsors, organically, in how bitcoin or how digital assets could be offered in a retirement plan,” said Dave Gray, Head of Offerings and workplace retirement platforms at Fidelity Investments, in an interview. .’
MicroStrategy is already registered
Interestingly, one of the first companies to sign up includes MicroStrategy, the company backed by Bitcoin proponent Micheal Saylor, according to Gray. Additionally, Fidelity is already in discussions with other employers. Just like traditional mutual funds, the digital asset account will also be integrated into the 401(k) investment menu by the middle of the year.
Fidelity, which recently launched ETFs based on crypto and the metaverse, also added that users could set a percentage of their funds to be allocated to Bitcoin, but the cap will be decided by the employer. For now, the investment company will not allow more than 20% of the total funds, but this may change in the near future.