Fidelity Investments Will Let Investors Accumulate Bitcoins in Retirement Accounts
Fidelity Investments plans to provide customers with the ability to accumulate bitcoins in 401(k) retirement savings accounts with the consent of their employers. Writes about it The Wall Street Journal.
This summer, the option will become available to employees of the 23,000 companies that use Fidelity to manage their $2.7 trillion in retirement plans.
The management fee will be 0.75% – 0.9% of AUM depending on the amount of investment and the type of client. Trading commissions are also expected to be charged.
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The share of digital assets in the portfolio will be limited to 20%. In the future, the addition of other cryptocurrencies is not ruled out.
“There is a need to diversify […]. Cryptocurrencies will shape the way future generations think about investing. We are seeing growing and organic interest from clients across a wide range of industries.” Dave Gray, Head of Fidelity Retirement Products, said in a statement.
The decision was made a month after the Ministry of Labor disturbed adding digital assets to 401(k) accounts.
The agency may ask employers whether such plans meet the due diligence and loyalty criteria. Industry members, including Fidelity, have called for the guidance to be withdrawn.
In November 2019 Fidelity Investments launched institutional-oriented crypto-custodial service.
In 2020, in the US, pension plans with investments in the first cryptocurrency were offered DAiM as well as Bitwage with Gemini.
Formerly one of the pension funds of the New Zealand NZ Funds Management invested 5% of assets in bitcoin.