Fidelity, one of the largest providers of 401(k) retirement plans in the U.S., is allowing participants to invest a piece of their retirement portfolio into Bitcoin, provided the employers allow it.
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Fast facts
- Fidelity introduced a digital assets account to hold Bitcoin, integrating it into retirement investment options.
- Bitcoin investments will be secured by Fidelity’s custodial arm, Fidelity Digital Assets, to ensure “institutional-grade” security.
- MicroStrategy, one of the largest institutional investors in Bitcoin, has already signed up with Fidelity, though the digital assets account will become widely available only by mid-year.
- While employers can choose the percentage of funds that can be invested in digital assets, Fidelity has capped the investments to 20% of total funds for now.
- The U.S. Labor Department cautioned employers and overseers last month about investing retirement funds into cryptocurrencies.
See related article: Fidelity launches spot Bitcoin ETF in Canada
