Observations on Fidelity’s Bitcoin–401(k) Announcement

May 13, 2022 | Nic Solecki, CBDA, Associate Research Analyst

On April 26th, 2022, Fidelity Investments announced plans to offer bitcoin for 401(k) plans. For Fidelity, this plan is a natural next step. As shown in Exhibit 1, Fidelity began exploring digital assets in 2014. Soon after, bitcoin-centric custody solutions began to emerge, followed by a private fund and spot-based ETF. While Fidelity’s embrace of bitcoin could be seen simply as bandwagon hopping, the trend below suggests that bitcoin may be part of a broader long-term digital asset strategy.

In this edition of DC Perspectives, we cover the implications of Fidelity’s announcement for bitcoin and digital assets broadly, for the investment industry, and for defined contribution plan sponsors.

Read > Observations on Fidelity’s Bitcoin-401(k) Announcement

 

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.