Fidelity is the largest retirement plan provider in the United States, with 23,000 companies using it to administer their plans. These employers will decide if their workers can have a bitcoin option. If so, companies can also lower the threshold for savings invested in bitcoin.
Fidelity already has some traction in the crypto market, offering a trading platform specifically designed for hedge fund investors. Fidelity manages $2.7 trillion in assets for 20 million customers.
But concerns about cryptocurrency still linger. The Department of Justice said in March that cryptocurrency should be avoided in retirement accounts because market fluctuations are too volatile. Bitcoin has lost 40% of its value since its November high of $69,000.
The Labor Department regulates company-sponsored 401(k) plans and has warned that providers should use “extreme care” before adding cryptocurrencies to their plans.
Some also consider that the market is still too young to know where it is going, and the United States has not yet issued regulatory guidelines on cryptocurrencies.