According to a recent article published by The New York Times, mutual fund giant Fidelity Investments is on pace to allow users to add Bitcoin to their 401(k) savings plans. Despite the substantial potential returns, many pension funds and asset managers are sceptical about digital currencies. Due to their spotty regulation and reputation for hacks, heists, and other forms of crime.
Now that Fidelity, the largest supplier of pension plans, has confirmed their Bitcoin pension plan. This decision can be the eureka moment for cryptocurrency adoption in the United States. With this, Fidelity paved the way for mainstream money to surge into cryptocurrencies.
The Boston-based investing giant oversees more than 20 million people’s retirement funds. According to Fidelity’s Dave Gray, plan sponsors are more interested in Bitcoin.
Later this year, Fidelity hopes to provide Bitcoin-holding 401(k)s. A fee of up to 0.9% will be charged. Savings programmes are heavily regulated, so Fidelity’s new initiative will almost certainly be scrutinised by regulators. The US Department of Labour issued a warning last month against introducing cryptocurrency into people’s 401(k) accounts.
Furthermore, the new product’s adoption will be largely determined by companies’ willingness to include Bitcoin in their employees’ retirement accounts. MicroStrategy, a business analytics firm noted for being the largest corporate Bitcoin holder, has already committed to the ambitious objectives.
