Fidelity Investments said Tuesday it will offer workers the chance to put Bitcoin into their 401(k) accounts. The move would make cryptocurrency more accessible to mom-and-pop investors saving for retirement.
Fidelity laid claim to being the first 401(k) provider to offer this sort of cryptocurrency opportunity in the popular retirement savings plans.
In the Fidelity arrangement, Bitcoin would be inside an investment offering that holds Bitcoin and short-term money market investments. The combination would provide cash for the account to make any needed daily transactions for an account owner.
The bitcoin investment would be one of the investment opportunities available to any account owner.
It would be up to plan sponsors — employers — to decide whether to include this cryptocurrency option.
Bitcoin Price Is Down
Bitcoin remains a volatile asset. Its price so far this year has declined 12.25%, according to Coindesk.com.
As of Tuesday morning, Bitcoin's price of $40,252.84 had gained 3.76% over the prior 24 hours.
Fidelity is the nation's largest retirement-plan provider. Its bitcoin offering could boost the popularity of cryptocurrency and make its use widespread among individual retail investors.
Still, on March 10 the Department of Labor asked 401(k) plan fiduciaries "to exercise extreme care before they consider adding a cryptocurrency option to a 401(k) plan's investment menu for plan participants."
Fidelity told Investor's Business Daily that the new accounts would enable employees "to gain exposure to Bitcoin by purchasing units of an account as part of their investment strategy vs. a direct purchase of Bitcoin."
Plan sponsors could "establish employee contribution and transfer limits into the account," a Fidelity spokesperson said.
This IBD report explains how to trade cryptocurrency futures.
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