ForUsAll And Fidelity Have Started Offering Crypto For Retirement Plans
This October, Fidelity, an asset management company with a $4.5 trillion market cap, announced that some of its 401(k) retirement plans had started including Bitcoin in their investing options. Approximately eight weeks ago, 50 of ForUsAll’s 550 clients began allowing employees to invest their retirement funds in Bitcoin and Ethereum. ForUsAll is a San Francisco-based supplier of 401(k) plans.
Fidelity stated that there was a considerable demand for the product from companies and employees when it originally launched Bitcoin for retirement plans in April. The Wall Street Journal reported on Thursday that other 401(k) providers, including Vanguard Group, Alight Solutions LLC, and T. Rowe Price Group Inc., do not offer comparable programs. In contrast, they point to a shortage of corporate demand and a murky legal landscape for digital assets.
Soon, Alight will release a report outlining the results of its poll of 90 businesses with more than 3 million employees, which indicated that just 4% of respondents were interested in incorporating cryptocurrency. Even those four per cent are awaiting regulatory direction. The chief executive of ForUsAll, David Ramirez, points out that there is more of a need for digital assets at his company. He said that just 300 of the 2500 employees qualified to invest through such programs with ForUsAll. According to Ramirez, 100 other businesses should have crypto alternatives by the end of the year.
Compass Mining, a company that sells Bitcoin mining equipment and started its retirement plan with ForUsAll a few months ago, is one company that has included cryptocurrency in its retirement programs. Sixty-three of its 70 employees, including Chief Strategy Officer Jason Nunney, participate in this event. Nunney decided to put the maximum amount that ForUsAll permits, which is 5% of his retirement plan, into cryptocurrency. Fidelity, on the other hand, allows employees to invest up to 20% of their retirement funds in Bitcoin.
MicroStrategy, whose former CEO Michael Saylor is one of the most outspoken supporters of Bitcoin, was the first employer to consent to utilize Fidelity’s product. The plan’s governing body has the final say, but the company’s senior vice president, Jeremy Price, is still striving to include Bitcoin. The previously circulated reports that Fidelity will begin providing its 34 million retail investors access to Bitcoin and Ethereum were confirmed on Thursday.