Fidelity has long had an interest in the emerging digital asset sector and today the company is taking it a step further by enabling users of its service to hold Bitcoin in 401K retirement plans.
Fidelity’s workplace Digital Assets Account (DAA) is said to be the first offering of its kind that will enable individuals to have a portion of their retirement savings allocated to bitcoin through the core 401(k) plan investment lineup. MicroStrategy, a publicly-traded company that has become a bit of a Bitcoin proxy, announced that it plans to add DAA to its 401k plan this year.
Fidelity Digital Assets SM is described as a platform that offers custody and trade execution for digital assets to institutional investors. In 2020, Fidelity’s digital asset management business launched a private Bitcoin fund that is currently available to accredited investors. Now retail investors will be able to access Bitcoin.
Dave Gray, Head of Workplace Retirement Offerings and Platforms at Fidelity Investments, said that as a leader in digital assets they are pleased to be the first investment fund platform to offer employers the option to provide access to Bitcoin as part of 401ks:
“There is growing interest from plan sponsors for vehicles that enable them to provide their employees access to digital assets in defined contribution plans, and in turn from individuals with an appetite to incorporate cryptocurrencies into their long-term investment strategies.”
According to the Fidelity Digital Assets 2021 Institutional Investor Digital Assets Study, 30% of US institutional investors surveyed would prefer to buy an investment product containing digital assets. Fidelity estimates that roughly 80 million of US individual investors currently own or have invested in digital assets.
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