Fidelity Investments plans to provide clients with the ability to save bitcoin in their 401(k) retirement savings accounts with their employer’s approval. The Wall Street Journal writes about it.

This summer, the option will be available to employees of 23,000 companies that use Fidelity to manage their $2.7 trillion retirement plans.

The management fee will be 0.75% – 0.9% of AUM, depending on the investment amount and type of client. Trade commissions are also expected to be collected.

The share of digital assets in the portfolio will be limited to 20%. In the future, the addition of other cryptocurrencies is also not excluded.

“Diversification is needed” […]. Cryptocurrencies will shape how future generations think about investing. We are seeing increased and organic interest from customers across a wide range of industries.” Dave Gray, President of Fidelity Pension Products, said in a statement.

The decision comes a month after the Labor Department took an interest in adding digital assets to 401(k) accounts.

The agency may ask employers whether such plans meet due diligence and loyalty criteria. Industry members, including Fidelity, have called for the guideline to be withdrawn.

In November 2019, Fidelity Investments launched an institutional-focused crypto custody service.

In 2020, the first cryptocurrency investment retirement plans were introduced in the US by DAiM and Bitwage with Gemini.

Previously, one of New Zealand’s New Zealand Fund Management pension funds invested 5% of assets in bitcoin.