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Fidelity is reportedly allowing 401(k) retirement savings accounts to invest in Bitcoin

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United States-based retirement plan provider Fidelity Investments will reportedly allow 401(k) retirement savings account holders to invest directly in Bitcoin (BTC).

The new Bitcoin retirement investment plan would go live later this year. It will allow over 23,000 Fidelity-affiliated companies to manage their retirement accounts to offer Bitcoin investment options to customers, The Wall Street Journal reported.

If the proposal to allocate BTC to their savings account is approved by employers, retirement savers could allocate up to 20% of their portfolio to Bitcoin. Fidelity is currently in talks with several employers using its services, and MicroStrategy has reportedly already approved the BTC investment plans.

The argument for retirement accounts to invest in Bitcoin is not new. In early June 2021, another retirement plan provider, ForUsAll, partnered with Coinbase to offer BTC exposure to its retirement account holders. However, Fidelity’s interest in this sector would definitely propel the idea into the mainstream.

Related: Fidelity: Bitcoin is a “superior form of money”

Dave Gray, head of workplace retirement offerings and platforms at Fidelity Investments, noted that the decision to offer Bitcoin exposure to 401(k) plan holders was based on high customer demand. He said:

“We’ve started to hear growing interest from plan sponsors about how Bitcoin or how digital assets might be offered in a retirement plan. We expect cryptocurrency to shape the way future generations think about investing in both the short and long term.”

Gray also noted that in addition to its initial support for Bitcoin, the company would add other crypto assets to the investment option based on customer demand.

With over $4 trillion in assets under management, Fidelity was among the first mainstream financial institutions to embrace crypto with the launch of its digital assets division in 2018. Since then, the investment firm has been one of Bitcoin’s biggest supporters.