Fidelity, Bitcoin Pension Plans

Fidelity Investment, the world’s fourth-largest pension fund manager, said Tuesday It will allow people to put a portion of their retirement savings into Bitcoin through their investment plans.

Fidelity Investing and Bitcoin Retirement Savings

BTC Investment Pension Plans
Fidelity Investment Adds Ability to Deposit Part of Your Retirement Savings in Bitcoin

Fidelity Investment, the world’s fourth largest investment fund, with more than $28 trillion in assets under management Based in Boston, Massachusetts, it said it will allow its customers to add bitcoin investments to their retirement plans as well. It is the first time that an institutional fund has directly opened up the possibility of allocating resources from pension funds in bitcoin.

Dave Gray Fidelity Retirement Plan Manager said:

“We are starting to feel a growing interest from plan sponsors, organically, in how to introduce Bitcoin or how to introduce digital assets into a retirement plan.”

The financial services company also indicated that the digital asset account will be widely available by the second half of 2022.

Microstrategy was one of the first companies to enthusiastically join Microstrategy, the world’s first Bitcoin investor, with 125,000 BTC in its portfolio, as reported via Twitter through its site. CEO Michael Saylor.

Saylor later announced on CNBC:

“Bitcoin is a digital property and that makes it the perfect retirement plan asset.”

How does the pension fund work?

According to what was leaked from The New York Times On Tuesday, the Bitcoin investment will be managed as a traditional mutual fund and employees will be able to decide whether to allocate it Percentage of their pension funds in bitcoin.

According to the New York Times report, the percentage will be limited and the commission for the retirement account will be Between 0.75% and 0.90% of the plan owner’s business percentage.

This Bitcoin move represents a small revolution regarding the potential for institutional investors to invest directly in digital assets, as the first Bitcoin ETF has not been approved in the US, despite receiving an SEC in recent months. Twenty requests for quotations.

One of those would just be of the same thing devotionIt was rejected by the Securities and Exchange Commission last January. In response to this denial by the US Stock Exchange, Fidelity launched in February Frankfurt Stock Exchange Spot ETF on Bitcoin.

On the other hand, Fidelity, a company that has always taken a keen interest in the cryptocurrency world, has already launched an instant Bitcoin ETF in Canada, while recently saying that it is ready to open up to investments as well in Canada. Ethereum

But the reactions of the US authorities to Fidelity’s decision to open up investing in Bitcoin for its pension plans have been very cautious, if not critical.

The US Department of Labor said in a statement:

“These investments present significant risks and challenges to participants’ retirement accounts, including significant risks of fraud, theft and loss.”

The investment firm’s response to these allegations has always come through the mouth of Dave Gray:

The Department of Labor is replacing its views on cryptocurrency with what rightfully belongs to the trustees of the plan’s sponsors.”


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