Fidelity Investments to Allow Employees Save Bitcoin in 401(k) Accounts 

US-based financial services company Fidelity Investments said it would allow investors to add Bitcoin (BTC) to their 401(k) retirement savings accounts later this year. 

Fidelity Launches Bitcoin Retirement Accounts

With their employer’s permission, investors will be able to add up to 20% of their retirement funds to Bitcoin, Fidelity said. 

Per the announcement, all the companies using Fidelity to issue retirement plans for employees will have the option to include cryptocurrencies on their menu. 

The service will be available through Fidelity’s newly launched workplace Digital Assets Account (DAA), which will be integrated into the 401(k) investment account. 

The company will charge investors between 0.75 percent and 0.90 percent of the total assets invested.  However, this percentage will be dependent on the amount invested and the customers involved. 

Additionally, extra trading fees yet to be disclosed at the time of this report will be included in the future and users will have the opportunity to decide the amount to be charged.

Dave Gray, head of workplace retirement offerings and platforms at Fidelity Investments, noted that the company is excited to be the first to give crypto exposure to investors through 401(k). 

“As a leader in digital assets, we are thrilled to be the first to offer employers exposure to bitcoin for the core lineup of 401(k)s that reflects our commitment to meeting their evolving needs and our belief in the promise of blockchain technology for the financial industry’s future,” Gray.

MicroStrategy to Use Fidelity’s DAA

Leading business intelligence company MicroStrategy plans to be the first to team with Fidelity to offer DAA accounts to employees. 

This is not surprising as the business intelligence firm is very bullish on Bitcoin and has adopted the cryptocurrency as its primary reserve asset. 

“MicroStrategy looks forward to working with Fidelity to become the first public company to offer its employees the option to invest in bitcoin as part of our 401(k) program,” said Michael Saylor, Chairman and CEO of MicroStrategy.

Department of Labor Keeping a Close Eye on Crypto

Global financial  authorities are on the lookout to ensure that cryptocurrencies are properly regulated. 

Last month, the U.S. Department of Labor, which is tasked with overseeing the retirement plans, revealed it would keep a close eye on companies looking to include crypto assets on their menu. The department stated that investors may not be aware of the risks involved in cryptocurrencies.