Cryptocurrency

Fidelity Launches Industry First 401(k) Bitcoin Offering in Partnership With MicroStrategy

The 401k BTC offering will be made available to more employers sometime mid-year.

Cryptocurrency

Fidelity Launches Industry First 401(k) Bitcoin Offering in Partnership With MicroStrategy

The 401k BTC offering will be made available to more employers sometime mid-year.

Fidelity Investments announced Tuesday, April 26, the launch of an industry-first workplace account offering, the Digital Assets Account (DAA). This new offering will make it possible for 401(k) investors to access bitcoin. To start Michael Saylor‘s MicroStrategy, will be the first to offer the plan to its employees.

Fidelity is constantly seeking to provide more exposure to digital assets for its clients, from its exploration of the space beginning in 2014 with bitcoin mining to the recently launched cryptocurrency and metaverse index funds. In a comment on the rise in demand for such products, Dave Gray, head of workplace retirement offerings and platforms at Fidelity said “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.”

The new offering will allow employees who participate to access cryptocurrency investments, primarily in bitcoin. The DAA will be a custom plan that holds both bitcoin and short-term money market investments that might be needed for daily transactions on behalf of the investor, like withdraws, transfers, etc. The plan will feature the highest institutional-grade security available as well as optional cryptocurrency education to help investors make the most informed decisions for their portfolios.

According to a study done by Fidelity, 30% of US institutional investors surveyed would prefer to buy an investment product containing digital assets. The study also highlighted that roughly 80 million US individual investors currently own or have invested in digital currencies — which is nearly a quarter of the US population.

The increased interest from both institutional and individual investors continues to advance the significance of digital assets in the new Web3 world.

Elsewhere in crypto, Stripe partners with Twitter to enable global cryptocurrency payouts in USDC.

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