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As Workers of the World Await Fidelity’s Bitcoin 401(k), Will IRA-Friendly ETFs Be Next?
Despite strong opposition from some of the most powerful members of Congress and Department of Labor, which oversees 401(k) plans, Fidelity is still preparing to offer the option to invest in cryptocurrency on some employer-sponsored retirement plans by the end of the year.
The Fidelity Digital Asset Accounts will give employers the choice to allow participants to invest up to 20% of their accounts in bitcoin. The April 26 announcement listed MicroStrategy, a software-developer-turned-bitcoin-investment-firm, as the first client signed up.
There are several ways to invest in cryptocurrencies with individual retirement account (IRA) funds, most notably Grayscale Investments’ various crypto trusts, through several FinTechs, and exchange-traded funds (ETFs) that invest in bitcoin futures, including ProShares, Valkyrie and VanEck. But 401(k) funds are still off limits.