Fidelity opening retirement investments to bitcoin

Fidelity Investments will expand to offer 401(k) investors access to bitcoin, the company announced Tuesday.

Fidelity will launch a new Digital Assets Account that allows investors to allocate some of their retirement savings to bitcoin.

The new developments will be broadly available within months but will first be used by business intelligence company MicroStrategy.

Fidelity, the first investment company to offer investors a bitcoin option, began its exploration into the currency in 2014 when it experimented with bitcoin mining.

“As a leader in digital assets, we are thrilled to be the first to offer employers exposure to bitcoin for the core lineup of 401(k)s that reflects our commitment to meeting their evolving needs and our belief in the promise of blockchain technology for the financial industry’s future,” said Head of Workplace Retirement Offerings and Platforms at Fidelity Investments Dave Gray.

He continued, “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.”

Fidelity launched Fidelity Digital AssetsSM in 2018, a program that allows for custody and trade execution for digital assets.

The company also launched a private bitcoin fund in 2020.

The Fidelity Digital Assets 2021 Institutional Investor Digital Assets Study found that 30 percent of U.S. institutional investors surveyed indicated a preference for investments including digital assets.

Fidelity reports an estimate of 80 million U.S. investors who are current or former investors in digital currencies such as bitcoin.