Fidelity will offer BTC inclusion in retirement plans
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Fidelity Investments, a US-based financial services company, will allow investors to add BTC (BTC) to their 401(k) retirement plans through the Digital Assets Account service.
According to a report on Tuesday (26) by The Wall Street Journal, employers will be able to put a cap of up to 20% on savings in cryptocurrency.
That is, the initiative will allow novice investors to expose themselves to BTC without having to open an exchange account, for example.
401(k) accounts are company-sponsored retirement accounts in the US. More precisely, a 401(k) is a fund that allows an employee to move part of their salary into a long-term investment.
Employees receive a tax break on the money they contribute, while contributions are automatically deducted from paychecks.
BTC Retirement
In the US, Fidelity is the largest provider of 401(k) savings accounts. In 2020, for example, the company held about $2.4 trillion in 401(k) assets, or more than a third of the market at the time, according to research firm Cerulli Associates.
Fees on BTC investments in Fidelity’s 401(k) accounts range from 0.75% to 0.90%. The fee will depend on the amount applied and the employer. In addition, an additional trading fee will be charged, which has not yet been disclosed.
Fidelity also plans to create educational materials for investors about the service. The new product is expected to be launched in 2022.
In an interview with the Wall Street Journal, Dave Gray, head of workplace retirement offerings and platforms at Fidelity Investments, emphasized the “need for a diverse set of investment products and solutions” for investors.
“We fully hope that cryptocurrency will shape the way future generations think about investing in the short and long term,” he said.
MicroStrategy and SkyBridge will join
According to the Wall Street Journal, business analysis firm MicroStrategy had already signed off on Fidelity’s plan. It is worth noting that Michael Saylor’s company holds almost 130,000 BTC on its balance sheet.
Who also announced that he will join the service was Anthony Scaramucci, founder and chief executive of SkyBridge Capital. He took to Twitter to report the news:
.@SkyBridge will offer #BTC as part of its 401k program as soon as it is available. Stay tuned.
— Anthony Scaramucci (@Scaramucci) April 26, 2022
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