One of the world’s largest financial services firms is seriously considering launching retirement plans that will allow employees to set aside funds in Bitcoin.
401k goes public
Ever since the U.S. regulator gave permission for Bitcoin to be used in 401k plans, few providers of such solutions worked towards it. In June 2021, we reported that Coinbase partnered with ForUsAll to provide the startup’s customers with the ability to invest in Bitcoin for employees’ 401k. For more information, see the article titled “Coinbase partners with 401k provider to offer BTC”.
However, major market players have shown at most a moderate interest in Bitcoin. It looks like the situation is about to change, and it is thanks to Fidelity Investments.
A plan on the way to implementation
According to representatives of Fidelity Investments, there are many indications that in the near future the company will allow employees of its clients to allocate part of their savings portfolio in Bitcoin. These opportunities will apply to 20% of the funds and will not require setting up an account on an exchange or operating a crypto wallet. The program would be launched later this year. It could give huge opportunities for adoption as Fidelity Investments serves more than 23,000 companies. One of them is MicroStrategy, which has initially expressed interest in such a venture. At the same time, talks are ongoing with more companies.
Decision backed by fundamentals
The head of platforms at Fidelity Investments, Dave Gray, indicates that the decision is justified by the very high demand expressed by the firm’s clients. In his words:
“We’ve started to hear growing interest from plan sponsors, organically, in how Bitcoin or how digital assets can be offered in a retirement plan. We fully expect cryptocurrencies to shape the way future generations think about investing, in the near and distant future.”
Fidelity has long been known for its interest in both Bitcoin and the crypto space. The company’s involvement in a 401k plan backed by BTC only strengthens its market position. At the same time, this is a significant move towards mass adoption of Bitcoin. Especially within the United States.