Fidelity Investments plans to provide clients with the ability to accumulate bitcoins in 401(k) retirement accounts with the consent of their employers. The Wall Street Journal reports.<\/p>\n
This summer, such an option will be available to employees at 23,000 companies using Fidelity to manage their retirement plans, representing $2.7 trillion in assets.<\/p>\n
Management fees will amount to 0.75%\u20130.9% of AUM<\/span> depending on the amount invested and client type. Trading commissions are also expected to be charged.<\/p>\n The share of digital assets in the portfolio will be capped at 20%. In the future, the addition of other cryptocurrencies is not ruled out.<\/p>\n “There is a need for diversification [\u2026] Cryptocurrencies will shape the investment mindset of future generations. We are witnessing growing and organic interest from clients across a wide range of industries,”<\/em> said Dave Gray, head of Fidelity’s retirement products.<\/p>\n<\/blockquote>\n The decision comes a month after the Department of Labor raised concerns<\/a> about adding digital assets to 401(k) accounts.<\/p>\n The department could request employers to confirm that such plans meet the criteria of prudence and loyalty. Industry participants, including Fidelity, have urged the withdrawal of such guidance.<\/p>\n\n