MicroStrategy Is First To Offer Fidelity’s 401(k) Bitcoin Product
Fidelity Investments is launching a 401(k) product offering that allows individuals to include bitcoin in their retirement plan. MicroStrategy will be the first publicly traded company to offer its employees the new product.
Fidelity Investments announced the launch of Fidelity’s workplace Digital Assets Account (DAA), the first product offering that will enable individuals to have a portion of their retirement savings allocated to bitcoin through the core 401(k) plan investment lineup.
MicroStrategy plans to add to its 401(k) plan later this year, which will see the business intelligence company become the first employer to leverage the new product, according to a press release.
MicroStrategy CEO, Michael Saylor, commented:
“MicroStrategy looks forward to working with Fidelity to become the first public company to offer their employees the option to invest in bitcoin as part of our 401(k) program.”
Bitcoin in the proprietary DAA will be held in the Fidelity Digital Assets custody platform in a measure meant to provide institutional-grade security.
Dave Gray, Head of Workplace Retirement Offerings and Platforms at Fidelity Investments said:
“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.”
According to the Fidelity Digital Assets 2021 Institutional Investor Digital Assets Study, 30% of U.S. institutional investors surveyed would prefer to buy an investment product containing digital assets. Meanwhile, Fidelity estimates that roughly 80 million U.S. individual investors currently own or have invested in digital currencies.
Companies vying for their piece of the growing market share of cryptocurrencies like bitcoin will continue to rise. Saylor stated “Teaming with companies like Fidelity that are innovating in bitcoin for corporations is important to us, as is furthering the development of the bitcoin ecosystem for institutional investors.”
Employers can expect further updates on the program in coming months.
