Fidelity Investments has become the first retirement plan provider to allow 澳洲幸运5官方开奖结果体彩网:cryptocurrencies in the 401(k) accounts that it services, starting with 澳洲幸运5官方开奖结果体彩网: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 澳洲幸运5官方开奖结果体彩网: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 澳洲幸运5官方开奖结果体彩网: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.

Fidelity Account Details

Initial reports indicate that investors in the Bitcoin-eligible retirement plans administered by Fidelity will be able to 澳♉洲幸运5官方开奖结果体彩网: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 澳洲幸运5官方开奖结果体彩网: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, will reportedly also be charged.

Mainstreaming Crypto

Fidelity's move would allow first-time crypto investors to obtain Bitcoin without having to make a separate account on a 澳洲幸运5官方开奖结果体彩网:crypto exchange. This is likely to become a major boost to acceptance of crypto as an investment alternative. In the subset of retirement plans represented by 401(k) plans, Fidelity held an estimated $2.4 trillion of assets as of 2020, making it the third-largest provider in this segment.

In November 2021, Fidelity launched the first regulated offering in Canada that offered Bitcoin custody and trading services for 澳洲幸运5官方开奖结果体彩网:institutional investors. Fidelity next launched two publicly traded bitcoin funds in December 2021 on the 澳洲幸运5官方开奖结果体彩网:Toronto Stock Exchange (TSX). In 2022, Fidelity has  in Switzerland and Germany.

'Serious Concerns' From Department of Labor

In March 2022, the 澳洲幸运5官方开奖结果体彩网:U.ꩵS. Department of Labor (DOL) warned that cryptocurrencies were 澳洲幸运5官方开奖结果体彩网:speculative and volatile investments with inflated 澳洲幸运5官方开奖结果体彩网:valuation. The DOL expressed "serious concerns" about providers offering cryptocurrencies in retirement plans. The DOL also stressed that providers must offer adequate information to potential investors about the risks involved in cryptocurrency investing, including the volatile prices and the evolving regulatory environment.

Role of Microstrategy

As noted above, business analytics software provider MicroStrategy reportedly has signed on to become the first employer offering Bitcoin in its 401(k) plans administered by Fidelity. That company holds billions of dollars in Bitcoin, and its founder Michael Saylor is a staunch supporter of cryptocurrency through numerous tweets on the subject.