Fidelity Investments Introduced A Bitcoin 401(k)  

Fidelity Investments, one of the world’s top financial services companies, introduced a Bitcoin 401(k), as it announced the introduction of its new Digital Assets Account. This is the first blockchain-based account that allows consumers to direct a part of their 401(k) plan withdrawal funds to Bitcoin.

Bitcoin Retirement Benefits

“We are seeing an interest from leading employers to add digital means to their 401( k) plans,” said Newfront Retirement Services Executive Vice President Chris Call. “As companies consider necessary investment options in the design of their plans, we believe digital means are worth considering.”

Fidelity has introduced a first-of-its-kind opportunity to invest in Bitcoin through your pullout account as demand develops. Pullout savers can profit from duty-abused accounts while diversifying long-term products with the account.”

“As a leader in digital means, we are thrilled to be the first to offer employers exposure to bitcoin for the core range of 401( k) plans,” said Dave Gray, Head of Workplace Retirement Offerings and Platforms at Fidelity Investments.

Introduction of 401(k) Digital Asset Accounts

According to the Fidelity Digital Means 2021 Institutional Investor Digital Means Study, 30 US institutional investors asked would be interested in purchasing a digital asset-based investment solution. Fidelity also predicts that over 80 million private investors in the United States own or have invested in digital currencies. Fidelity Investments introduced a Bitcoin 401(k) and here is what that means.

Employees who are OK with the risks and volatility of blockchain can invest in bitcoin through a digital means account under their 401(k) plan’s inaugural portfolio. The DAA is a customized strategy that keeps bitcoin and short-term capitalist demands for investments to provide the account with the liquidity needed to execute daily transactions on the investor’s behalf.

To provide institutional-grade protection, Bitcoin in the DAA will be kept in the Fidelity Digital custodianship structure. Hand donation and exchange restrictions are placed in the account by plan sponsors that offer the DAA. Workers will have access to a fully integrated withdrawal strategy, a digital experience, and education to assist them in making informed decisions.

“Increasingly, we are seeing interest from leading employers to add digital means to their 401( k) plans,” said Chris Call, EVP, Retirement Services, Newfront. “As companies consider necessary investment options in their plan design, we believe digital means are worthy of consideration.”

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