Fidelity will allow investors access to Bitcoin in their 401(k)s

BeerFartMoron writes: In a first-of-its-kind move—and the latest sign that crypto-investing has gone mainstream—Fidelity Investments announced Tuesday that 401(k) plan participants will soon be able to invest in Bitcoin via their retirement plan.

The investing option should be available by mid-year, Fidelity, the nation’s largest 401(k) plan provider, said in a press release. Employers will need to opt into the change, which may limit which employees actually have access to Bitcoin in their workplace retirement accounts.

There are few details currently available about how exactly the account will work, but Fidelity says employees will be able to invest in Bitcoin via what the company is calling the Digital Assets Account, which will be part of the investor's 401(k). That account will also hold short-term money market investments to provide the liquidity for transactions.

Employers will be able to set their own limits on how much an employee can contribute to Bitcoin, though Fidelity's platform allows no more than 20% of a saver's contributions to be allocated to it, the company said. More digital assets may be added to the 401(k) offerings in the future.