September 29, 2022

Fidelity Investments Will Allow Investors To Accumulate Bitcoin In Retirement Accounts

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Fidelity Investments plans to provide customers with the ability to accumulate bitcoins in 401(k) retirement savings accounts with the consent of their employers. The Wall Street Journal writes about it.

This summer, the option will become available to employees of the 23,000 companies that use Fidelity to manage their $2.7 trillion in retirement plans.

The management fee will be 0.75% – 0.9% of AUM depending on the investment amount and type of client. It is also expected to charge trading commissions.

The share of digital assets in the portfolio will be limited to 20%. In the future, the addition of other cryptocurrencies is not ruled out.

The decision comes a month after the Labor Department was concerned about adding digital assets to 401(k) accounts.

The agency may ask employers whether such plans meet the due diligence and loyalty criteria. Industry members, including Fidelity, have called for the guidance to be withdrawn.

In November 2019, Fidelity Investments launched an institutional-focused crypto-custodial service.

In 2020, in the US, pension plans with investments in the first cryptocurrency were offered by DAiM, as well as Bitwage with Gemini.

Earlier, one of the pension funds of the New Zealand NZ Funds Management invested 5% of assets in bitcoin.

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