Investment in Bitcoin through 401(k) plans is now possible for MicroStrategy employees
On Tuesday, April 26, MicroStrategy (NASDAQ: MSTR) announced that its employees would be able to use Bitcoin in their 401K retirement savings accounts.
Investors will be allowed to commit a part of their 401(k)s into Bitcoin later this year, after Fidelity’s revelation in the Wall Street Journal that they may do so.
Michael Saylor, CEO of MicroStrategy and a proponent of Bitcoin, tweeted: MicroStrategy, a pioneer in bitcoin for enterprises, plans to give its workers the opportunity to invest in Bitcoin as part of their 401(k) portfolio. ” $MSTR.”
He went on to say: As part of our 401(k) plan, MicroStrategy is excited to collaborate with Digital Assets to provide our workers with the opportunity to invest in bitcoin.
Interestingly, Microstrategy CEO and Chairman Saylor recently denied claims that the business was surreptitiously liquidating its Bitcoin holdings.
Fidelity believes that crypto will have a significant impact on the future of investment
As part of its new workplace digital assets account (DAA), Fidelity will provide the new option to its customers, according to a press release.
Workplace retirement products and platforms director at Fidelity, Dave Gray, said: To meet the needs of our investors, we need to provide a variety of goods and investment options.” In the medium and long term, we believe that cryptocurrency will have a significant impact on the way people think about investing.”
A maximum of 20% of a retirement fund may be invested in bitcoin, although plan sponsors can reduce that limit at their discretion. As a result, Gray said that the first offering would only be available in Bitcoin, and that other cryptocurrency would not be considered.
Press announcement stated: DAA Bitcoin will be housed on Fidelity Digital Assets’ custody infrastructure to provide the highest levels of security.
Employees will be able to invest up to 20% of their account balance in a Bitcoin account using Fidelity’s trading and custody platform, as well as transfer the equal amount of their payroll contributions to the Bitcoin account, as discussed with MicroStrategy.