Retirement giant Fidelity said Tuesday that it’s launched a way for workers to put some of their 401(k) savings and contributions directly in bitcoin, potentially up to 20%, all from the account’s main menu of investment options.
Fidelity said it’s the first in the industry to allow such investments without having to go through a separate brokerage window, and it’s already signed up one employer that will add the offering to its plan later this year.
The U.S. government last month warned the retirement industry to exercise “extreme care” when doing something like this, highlighting how inexperienced investors may not appreciate just how volatile cryptocurrencies can be, among other concerns.
That’s because cryptocurrencies haven’t always moved in the same direction as stocks and other investments, though they often have in recent months amid worries about rising interest rates.
Or they may come around to that belief soon, and Fidelity wanted to be ready for them, said Dave Gray, Fidelity Investments’ head of workplace retirement offerings and platforms. Not only did bitcoin quadruple over 2020, but traders can buy and sell it 24 hours per day.