Fidelity is offering 401(k) investors access to bitcoin

[bbc.reporter]

This appears to be very good news that would pump bitcoin to another all time high, however, there are other articles that suggest it will be the employers' decision if they decide to allow it similar to this New York Times article.

https://www.nytimes.com/2022/04/26/business/crypto-401k-fidelity.html

This is very good for the future of bitcoin's adoption as an investment, however.

In any case, through Fidelity's new offering, I am quite certain that this will cause more retail money to slowly enter bitcoin once there is more stability in certain important markets, including the cryptospace have finished dumping and found the bottom. I also reckon that if bitcoin is very much widely adopted by much of the mainstream, we might witness more stability and the pumps of +10% in an hour might not occur anymore. Bitcoin might become normalized and move like something similar to traditional finance investments.



Fidelity Investments said Tuesday it will offer investors the option to put bitcoin in their 401(k)s, making it the first provider to offer crypto for retirement savings.

The crypto offering will be available for 23,000 employers that use Fidelity to administer their retirement accounts by midyear 2022. With $11.3 trillion in assets under administration, Fidelity is the nation’s largest retirement plan provider and its decision could make crypto even more popular and mainstream.

Read in full https://www.cnbc.com/2022/04/26/fidelity-offers-401k-investors-access-to-bitcoin-a-retirement-plan-first.html

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[mk4]

Though I have zero idea how much money will enter the BTC markets — I think people are totally sleeping on this announcement, and I'm shocked that we didn't see at least a small bounce after this was announced (in fact, BTC dropped LOL). Even just a very small percentage of their AUM is pretty significant.

[Darker45]

This is good news, of course, but interpreting this news as the one that would push the price of Bitcoin up toward another all time high is a bit of an exaggeration. The news has been spreading around and Bitcoin's price is not even reacting positively. So in terms of immediate impact, it doesn't seem to have caused any. And while this offering will be taking actual effect in the middle of the year, it doesn't guarantee that employers would actually risk the retirement savings of their employees into Bitcoin.

[mk4]

it doesn't guarantee that employers would actually risk the retirement savings of their employees into Bitcoin.

They don't need to put a huge percentage; as I'm pretty sure these people know how to practice proper portfolio risk control. They could do something as small as 0.1%, as at this point not having a very small amount of BTC is pretty irresponsible imo.

[franky1]

Though I have zero idea how much money will enter the BTC markets — I think people are totally sleeping on this announcement, and I'm shocked that we didn't see at least a small bounce after this was announced (in fact, BTC dropped LOL). Even just a very small percentage of their AUM is pretty significant.

fidelity has been talking about the bitcoin ETP since february.
seems todays 'news' has been linked to microstrategy highlighting that it will be using the ETP and thus recycled the 'news' of february, as if its a new announcement

reading fidelities prospectus ..
rather than a spot/futures ETF. which is custodial collateral pegged to shares and traded on the shares market, fidelities plan is a custodial collateral pegged into bonds. and played on the bond market

these bonds are measured at the spot price and not any 'futures' or 'options'
each bond on the 10th feb was worth 0.0001
but as of todays post, the bonds only 'entitle' 0.0000998438 each
(and nope i didnt mistakenly do more then 8 decimals... they did)
https://www.fidelity.lu/static/master/media/pdf/download-material/Fidelity_Physical_Bitcoin_ETP_Bitcoin_Entitlements.pdf

[tranthidung]

Currently, there are bigger institutional investors than Fidelity [1]. Things can change in future but we can not assume that Fidelity can grow faster than Micro Strategy, Grayscale, Tesla etc. in Bitcoin adoption and total value of investment into Bitcoin from their institute and their investors.

I think it is a good news from Fidelity but after 5 years in the market, news can be real or unreal and we have to wait for real implementation to confirm that news is true. In addition, there are many barriers technically to implement their plan to real things.

[1] https://bitcointreasuries.net/

[Franctoshi]

Step in the right direction taken by Fidelity should they fully implement what's current in the news because this is the future of money and technology,  I think that Fidelity having done proper research and evaluation by seeing the future and where the world is heading to, therefore taking a bold step forward by offering investors access to Bitcoin.
   Secondly, the news is definitely gonna be a leading step for other institution to follow suit and will have a positive impact on Bitcoin.

[franky1]

Step in the right direction taken by Fidelity ..
the news is definitely gonna be a leading step for other institution to follow suit and will have a positive impact on Bitcoin.

its already set up.
but yes if the US SEC and UK FCA are dragging their knuckles declining to approve any spot pegged ETF.. then companies will just go to EU/asian markets and do spot pegged bonds/stocks as a work around(ETP)

though most americans love to only invest in america. im not so sure that fidelity on the euro markets will get much attention, but only time will tell

[avikz]

Retirement planning with bitcoin!! That great! Especially for the young employees who has a long time in hand. It becomes very interesting because Fidelity will mtach the employee's contribution here so it's a benefit only!

People who has a day job with Fidelity, this is your chance to make great out of bitcoin. I wiah my employer provides some sort of bitcoin investment through my provident fund (same as 401k in my country).

[Don Pedro Dinero]

This seems only a first step, as I am convinced that in a few years, having the option of holding Bitcoin in 401(k)s or equivalent retirement plans will be the norm, in the same way that today you can choose from a multitude of funds.

And I also believe that it will become commonplace for financial advisors to recommend diversifying by having a certain percentage in Bitcoin.

...as at this point not having a very small amount of BTC is pretty irresponsible imo.

This is what I meant.

[franky1]

maybe its just me.. but i was part of the generation that if you own 1000 shares/bonds in year 1, and i didnt sell, then in 20 years id still have 1000 shares/bonds at the end that were swappable for the exact same %/allocation as promised at the start

bonds use to mean if you buy $100 then that promises you $100 + X a year..
but these schemes by greyscale/fidelity are -x% not +x%

greyscale/fidelity seem to want to depreciate peoples investment by not exactly truly 'pegging' their assets to their shares/bonds. but depreciating them via fee's

back in my day these pension funds used to get their profits from their own trading. not from depreciating peoples holdings

id much rather keep my actual bitcoin hoard than have their depreciating bond.. as that then is less of a bond and more like that scammy demurrage coin forked years ago

greyscale charge 2% and fidelity charge 1%
yep if you bought 1 bond of fidelity on feb 10th 2022 you would have 0.0001 which turns into only 0.00009925 by feb 10th 2023