Bitcoin

Bitcoin in Your 401(K)? Fidelity Just Introduced It As An Option

Fidelity Investments, one of the country's top 401(k) providers, is now allowing investors to invest in Bitcoin through their 401(k)s. Continue reading to learn more.

February 10, 2022

Bitcoin in Your 401(K)? Fidelity Just Introduced It As An Option

Big news! Fidelity Investments, one of the largest 401(k) providers in the United States (if you didn't know), is now allowing investors to put Bitcoin in their 401(k)s. 

Yes, you read that correctly. And for a lot of folks in the financial space, there's been positive and negative reactions. 

Is Bitcoin taking another step towards mainstream adoption?

Fidelity Investments is presently the first retirement provider to do so. It will be available to the 23,000 companies who use Fidelity for their retirement plans later this year. Savers will be able to put up to 20% of their 401(k) into Bitcoin through the plan, which is a significant amount. (This is fantastic.)

The Digital Assets Account, as Fidelity refers to it, will house Bitcoin and short-term money market investments to provide the liquidity that investors would need to conduct daily transactions if they so want. To maintain "institutional-grade security," the currency will also be held in custody by Fidelity Digital Assets. So, by the middle of the year, nearly 2.7 trillion dollars in assets will be available for 20 million people to deposit into Bitcoin.

According to a recent survey conducted by Fidelity, 30% of Americans would like to own a digital asset. So they're starting with Bitcoin to achieve precisely that. If you're interested, they created an excellent article called "Bitcoin First" that explains how Bitcoin differs from other cryptocurrencies.

They're estimating 80 million individual investors in the United States own some sort of digital currency.  So this is the next wave. 

What are your thoughts? Would you own Bitcoin in your 401(k)?

If you have any questions regarding this, feel free to reach out to me! 

Cheers.

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