Can I Buy Bitcoins Through Fidelity

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Allegiance has more than $two.7 trillion worth of avails under direction and becomes the first major retirement investment business firm to offer a cryptocurrency option to everyday investors.

Key points

  • The
    Wall Street Journal
    reported today that Fidelity Investments plans to make Bitcoin available to its 20 1000000 retirement savers who have 401(thousand) accounts under management. Fidelity is the first major retirement investing firm to offer crypto to the masses.
  • The article stated that the 23,000 employers that use Allegiance to manage retirement benefits will have the option to add Bitcoin — or not – to the retirement portfolios available to employees later this year.
  • Allegiance volition allow individual portfolios to concur up to 20% in Bitcoin.

Wall Street Journal
first reported this morning that Boston-based Fidelity Investments intends to offer Bitcoin every bit an investment pick to the 20 1000000 individuals who have 401(k) savings accounts with the house. According to the article, after this year, the 23,000 employer sponsors who use Fidelity to manage their retirement benefits volition have the choice whether or non to add together Bitcoin to the slate of investments that employees tin can then select for themselves.

Currently, the primary means to secure Bitcoin are through a centralized cryptocurrency exchange, a decentralized exchange, or direct from another individual. This marks the first instance of a major, traditional retirement firm offering admission to a crypto asset to everyday investors.

“In that location is a demand for a diverse gear up of products and investment solutions for our investors. We fully await that cryptocurrency is going to shape the way time to come generations call up nigh investing for the near term and long term,” said Dave Grayness in the article, head of workplace retirement offerings and platforms at Fidelity.

The article noted that Gray said Fidelity would initially only support Bitcoin, with the expectation of expanding to other virtual currencies and digital assets in the future. While the Fidelity plan would reportedly allow individuals to hold up to 20% of their total portfolio value in Bitcoin, the actual percentage would be determined by the employer administrators.

Labor Department expressed concerns of crypto in 401(thou)s

Ironically, the timing of Fidelity’s announcement follows an anti-crypto-401(grand) mail last month on the U.South. Labor Section’s web log site. The write-up, attributed to Ali Khawar, blasts the idea of including cryptocurrencies as an investment pick for 401(k) savers.

“In recent months, some financial services firms take begun marketing investments in cryptocurrencies every bit potential investment options for participants in 401(k)s. At this early stage in the history of cryptocurrencies, even so, the U.South. Department of Labor has serious concerns virtually plans’ decisions to expose participants to direct investments in cryptocurrencies or related products, such every bit NFTs, coins, and crypto avails,” wrote Khawar.

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The blog also invoked President Biden’s recent executive order that enlisted virtually all federal agencies under his remit to research the cryptocurrency infinite; self determine the role and regulatory solutions each bureau can provide; and then study those findings publicly. The results are not expected until early autumn.

In the meantime, Khawar stressed the need of establishing a regulatory framework start, earlier offering individual investors the crypto pick within their ain retirement portfolios, “Cryptocurrency has gained mainstream popularity and notoriety, but there is notwithstanding corking doubt most how the marketplace will develop, and little agreement on investing fundamentals relating to cryptocurrency.”

Bitcoin barely budged on the news

At the fourth dimension of writing, Bitcoin was up i.v% on the news at a trading price of $39,674 per token according to The lack of price action in response to this news is a bit surprising as investors tend to “buy the rumor and sell the news.” So in this example Bitcoiners would load up on this Fidelity annunciation at present — the “rumor” — and and so take profits when Fidelity actually rolls out its Bitcoin investment option — the “news.”

Regardless, offer millions of investors fix access to Bitcoin is a bullish indicate for this projection.

As a reminder, this is not fiscal communication and every investor should always practice their own research and invest only what they can afford to lose. Yet, the fact that only 21 million Bitcoin volition ever exist available — and just 2 million remain unminted — suggests long-term upside for this deficient asset that’s likely to increase in value every bit access and demand for information technology increase.


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