Fidelity Offers Bitcoin as 401(k) Investment Option

investopedia.com:

Fidelity Investments has become the first retirement plan provider to allow cryptocurrencies in the 401(k) accounts that it services, starting with Bitcoin (BTC). This investment option will become available by mid-2022 to 23,000 employers that use Fidelity to administer their retirement accounts. Since Fidelity has $11.3 trillion in assets under administration (AUA), making it the largest retirement plan provider in the U.S., this move represents a major milestone in the mainstreaming of crypto.

Dave Gray, head of workplace retirement offerings and platforms at Fidelity stated: «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.» Business software provider MicroStrategy Incorporated (MSTR) reportedly will be the first employer to offer Bitcoin as an investment option in its employee retirement plans.

Initial reports indicate that investors in the Bitcoin-eligible retirement plans administered by Fidelity will be able to allocate up to 20% of their accounts to this investment option, although this figure may change. Moreover, the cap on Bitcoin investments will be determined by the employer.

Fees for Bitcoin-eligible accounts reportedly are planned to range between 0.75% and 0.90% of assets, with the exact amount to depend on the amount invested and the employer. Additional fees, particularly per-trade fees, reportedly also will be charged.

Fidelity's move would allow first-time crypto investors to obtain Bitcoin without having to make a separate account on a crypto exchange. This is likely to