New York Times reports that mutual fund behemoth Fidelity Investments aims to enable 401(k) savers to add Bitcoin to their accounts.
Considering that Fidelity is the country’s largest pension plan provider, this might be a watershed moment for bitcoin acceptance in the United States. More than 20 million individuals rely on the Boston-based financial firm for their retirement funds.
Plan sponsors are increasingly interested in Bitcoin, according to Dave Gray of Fidelity Investments. Later this year, Fidelity intends to begin selling 401(k)s that contain Bitcoin. A fee of up to 0.9 percent may be charged.
Keeping in mind that savings plans are heavily regulated, Fidelity’s new endeavour is sure to face a lot of regulatory scrutinies. The U.S. Department of Labor issued a warning against storing cryptocurrency in 401(k) accounts earlier this month.
In addition, the acceptance of the new product will largely rely on the willingness of businesses to include Bitcoin in their employees’ retirement plans.
One of the largest corporate holders of Bitcoin, MicroStrategy, has already signed on to the ambitious goals.
Financial institutions such as Fidelity were one of the first to get their feet wet with crypto. It wasn’t until 2014 that the Boston-based firm began mining Bitcoin. It started a cryptocurrency division in October of last year. A “huge success” according to CEO Abigail Johnson was Fidelity’s foray into the crypto custody market in 2019. The company’s Canadian division became the country’s first licenced Bitcoin custodian in November.
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