The biggest game in town is giving crypto a seat at the table.
Fidelity Investments said it will enable investors to include a bitcoin account in their 401(k)s.
The First Offering for the Industry
According to Fidelity's workplace Digital Assets Account, the industry's first offering will allow individuals to get a portion of their retirement savings allocated to bitcoin through its core 401(k) plan investment lineup.
Depending on a number of factors, the account fee will be between 0.75% and 0.90% of assets.
According to Cerulli Associates, Fidelity owned $2.4 trillion in 401(k) assets in 2020, more than a third of the market.
In 2020, there were around 600,000 401(k) plans, with about 60 million active participants, and millions of former employees and retirees, according to Investment Company Investment.
The firm said that an additional trading fee, which isn't yet disclosed, will be "competitively priced."
MicroStrategy, a business intelligence business founded by Michael Saylor, a billionaire and bitcoin evangelist, plans to be the first employer to offer Fidelity's digital assets account in their retirement plan.
"MicroStrategy is looking forward to working with the company to become the first public company to offer their employees the option to invest in bitcoin as part of our 401(k) program," said the author.
'A Very Bold Statement'
Saylor said in a statement that "we are planning to offer our employees the opportunity to invest in as part of their 401K portfolio as long as it continues to be a pioneer in bitcoin for corporations."
"Congratulations on ensuring a safe and stable pension for your employees," says one person.
Another person replies, "Looks like this is the start of a mass adoption."
"That Fidelity is allowing the more than 23,000 companies that have been registered to its 401(k) program to include a bitcoin account option for their employees," said Egor Volotkovich, the executive director of.
Although Fidelity itself has had a good stint in crypto investments over the years, Volotkovich believes that "bringing it close to the average worker" is excellent news for the crypto industry, as this move may entail a slew of new retail investors into the bitcoin world."
"With Fidelity on its foot in this regard, other 401(k) service providers will make a related move as bitcoin assistance may give Fidelity a significant competitive advantage, which many will also seek to profit from.
Laura Adams, a personal finance and cryptocurrency expert with, claims that while existing platforms allow individuals and the self-employed to invest in cryptocurrency inside various IRAs, "fidelity is the basis for bitcoin becoming added to employer-sponsored retirement plans."
"That's significant because they're one of the most well-known investment corporations, and we're likely to see a massive increase in employees adding to their 401(k)s later this year," she said. "Having additional choices on your investment menu at work is good news for consumers who want to own a diverse retirement portfolio inside a tax-advantaged account."
More investment firms may follow suit.
According to Adams, more investment firms may add it and alt-coins, such as ethereum and solana, to their menus.
"While employers may limit the amount of cryptocurrency that can be purchased by eligible employees, it's an excellent way for American workers to gain exposure to bitcoin, grow wealth, and reduce taxes," Adams said.
Bitcoin has experienced some significant change in the last several months, bringing it to a high of $69,000 in November, and falling below $34,000 in January.
Last month, the US Department of Labor issued a letter advising "plan fiduciaries to exercise extreme care before they consider incorporating a cryptocurrency option into a plan's investment menu."
"Extreme volatility may have a devastating impact on participants, especially those coming to retirement and those with substantial allocations to cryptocurrency."
Fidelity said its study conducted in 2021 that 30% of institutional investors in the United States would prefer to purchase an investment product with digital assets.
De asemenea, the firm estimates that roughly 80 million individual investors in the United States currently own or have invested in digital currencies.
In 2014, Fidelity began its exploration of blockchain technology with bitcoin mining and in 2018 launched its first commercial offering, Fidelity Digital Assets, a platform that allows institutional investors to hold custody and trade execution.
In 2020, Fidelity's digital asset management division launched a private bitcoin fund that is currently available to accredited investors.