Fidelity, the largest provider of 401(k)s in the US, stated it will offer Bitcoin as an investment option for its 401(k) plans, according to a report by The New York Times on Tuesday.
Fidelity will launch digital asset accounts, allowing holders of 401(k) plans to invest in the flagship cryptocurrency if their employers allow them.
Employers will be able to choose the amount they wish to allocate to Bitcoin, but the employers will set the maximum amount that can be invested in Bitcoin. The maximum allocated to Bitcoin cannot surpass the ceiling of 20$ set by Fidelity for now.
Fidelity is set to charge an account fee of between 0.75% and 0.90%. A trading fee will also be imposed.
Fidelity’s move comes a little over a month after the Employee Benefits Security Administration urged providers of 401(k) plans to exercise extreme caution before investing in cryptocurrency. BTCUSD up +1.88%, ETHUSD up +1.89%