Bitcoin Is Making Its Way Into Your 401(k)

According to the US Labor Department, Bitcoin must mature before it may be included in 401(k) plans (k). However, Bitcoin is fully developed and has been the best performing financial asset over the last decade, so it has earned its position in 401(k).
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Fidelity's desire to offer a bitcoin-based retirement plan later this year is putting the government's grasp of the crypto market to the test, as well as how it connects to its conservative attitude on Americans' retirement savings accounts. Fidelity said that business analytics firm Microstrategy (which also has the most bitcoin of any publicly traded company) will be the first to offer the plan.

According to Fidelity, employees cannot invest more than 20% of their savings in bitcoin, which appears to be a fairly specific percentage they've put out to negotiate with labor. Employers who try to offer such programs should "expect to be questioned," it continued. The good news for Bitcoin investors and supporters is that Fidelity's readiness to include cryptocurrencies in its retirement plan offers adds to cryptocurrency's legitimacy as a long-term investment and raises its profile as an emerging asset class.

Joe Sweeney, managing partner at Cornerstone Wealth, says Fidelity’s stamp of approval holds a lot of value in the world of finance.

“The goal of a 401(k) is to enable participants to save for a secure retirement,” Sweeney says. “That said, yes, the imprimatur of Fidelity will absolutely raise the standing of cryptocurrency among some significant number of Americans.”

Sweeney says Fidelity’s decision will put pressure on other major retirement plan providers, such as Vanguard and Charles Schwab, to offer Bitcoin options for retirement investors as well. However, Cox says other providers may not necessarily be too eager to follow Fidelity’s lead.
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“I think most will take the ‘you first’ approach to see if Fidelity lands itself in the regulatory and litigation abyss before adding crypto to their plan options,” Cox says. Official Article