Will become first provider to allow cryptocurrency in 401(k) accounts
By MARK KOLAKOWSKI Published April 26, 2022
Fidelity Investments has become the first retirement plan provider to allow cryptocurrencies in the 401(k) accounts that it services, starting with 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 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.1
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 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.1
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