Fidelity Investments, the largest retirement plan provider in the United States, will allow investors to put bitcoin in their 401k accounts.
Employees won’t be able to add crypto immediately, but sometime in the middle of the year. The 23,000 companies that use Fidelity to sort out retirement plans will be given the option to add Bitcoin to retirement plan. The endorsement of the US’ biggest retirement plan indicates that crypto investing is moving further into mainstream consciousness.
The account fee will range from 0.75% to 0.90% of assets, depending on the employer and the amount invested which will be limited to 20% initially. A separate trading fee would be “competitively priced,” according to the corporation.
Cryptocurrencies aren’t going away. Buy Bitcoin & Litecoin here.
Head of workplace retirement offerings and platforms at Fidelity Investments, Dave Gray said:
“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.”
Mr. Gray added that MicroStrategy, is optimistic about Bitcoin and has already signed on.
Fidelity’s announcement comes a month after the US Labor Department expressed concerns about cryptocurrencies in retirement plans. The department reminded overseers that they were responsible for choosing “prudent” options, suggesting Bitcoin had yet to achieve a pristine standard. Thankfully, that consideration changes fairly quickly if one looks into the asset.
Dave Gray underlined the need for diversified products, and his expectations for cryptocurrencies to shape future generations.
“There is a need for a diverse set of products and investment solutions for our investors. We fully expect that cryptocurrency is going to shape the way future generations think about investing for the near term and long term.”
Gray concluded saying that it would be limited to bitcoin at first, but more digital assets will likely be made available in the future. This is in-line with a fresh report which anticipates 33.7 million new users entering crypto this year.
Market Turmoil following Highest Inflation Figures in Decades
The stock market has been on a downturn recently with the SPX down nearly 10% this year. This is in part due to increasing interest rates, tightening monetary policy and hawkish rhetoric from the US Federal Reserve following the largest inflation figures in four decades. Former Bitmex CEO Arthur Hayes has gone as far to say that hyper inflation is now inevitable.
Market participants are currently pricing in a Fed rate hike of 0.75%-1% for the next rate hike in May. Bitcoin has been strongly correlated to tech stocks too, recently dropping to $38,200 before recovering to $40,750 (PrimeXBT) just today.
The turmoil hasn’t stopped confident large buyers from accumulating relatively cheap Bitcoin under $40,000.
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