Fidelity Investments made history by becoming the first provider to create a crypto retirement plan. On Tuesday, the company said it would offer investors the option to put bitcoin in their 401(k)s.
The new 401(k) option will be available for 23,000 employers who use Fidelity to manage their retirement accounts by mid-2022
Currently, Fidelity is the nation’s largest retirement-plan provider, with $11.3 trillion in assets under its administration. This decision could be one more great shift in the adoption of cryptocurrency in the mainstream markets.
“There is growing interest from plan sponsors for vehicles that enable them to provide their employees access to digital assets in defined contribution plans, and in turn from individuals with an appetite to incorporate cryptocurrencies into their long-term investment strategies,” said Dave Gra of Fidelity Investments.
Regulators are still uring people to proceed with caution when involving crypto in 401(k)s. Last month, the Department of Labor asked providers to “exercise extreme care” before adding cryptocurrencies as an option for 401(k)s.
The Department of Labor noted worries about volatility and warned of record-keeping issues, expressing losing or forgetting a password could result in lost assets.