Retirement saving accounts, including 401(k)s, will be able to invest in bitcoin according to Fidelity

    Fidelity Investments, a US-based retirement plan provider, will purportedly allow 401(k) retirement savings account participants to invest directly in Bitcoin (BTC).

    Later this year, a new Bitcoin retirement investing plan will be offered. According to the Wall Street Journal, this will allow more than 23,000 Fidelity-affiliated enterprises to manage their retirement accounts and give bitcoin investing alternatives to its consumers.

    If companies approve the request to deposit BTC in their savings accounts, retirees will be able to invest up to 20% of their portfolio in bitcoin. MicroStrategy has apparently consented to BTC’s investment plans, and Fidelity is presently in negotiations with many employers that utilise its services.

    The idea of investing retirement savings accounts in bitcoin isn’t new: in June 2021, another retirement plan provider, ForUsAll, teamed with Coinbase to provide their account holders access to BTC. Fidelity’s involvement in the area, on the other hand, will undoubtedly popularise this concept.

    The decision to provide bitcoin to 401(k) plan members was based on substantial client demand, according to Dave Gray, head of pension solutions and platforms at Fidelity Investments. He stated, “

    “Plan sponsors are increasingly interested in how bitcoin or digital assets may be provided in a retirement plan,” says the company. We absolutely anticipate cryptocurrencies to influence how future generations think about short and long-term investing.”

    In addition to initial support for Bitcoin, Gray stated that the business would add other cryptocurrency assets to the investment option based on client demand.

    Fidelity, which manages over $4 trillion in assets, was one of the first large financial organisations to invest in cryptocurrencies when it launched its Digital Assets business in 2018. Since then, the financial business has been one of Bitcoin’s most vocal backers.

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