BTC PULSE
No Result
View All Result
Play Now
No Result
View All Result
BTC PULSE
No Result
View All Result
Play Now
Home Bitcoin

A Bitcoin 401(k) Revolutionary, but financial Advisors are Skeptical

by Favour Ajibade
May 23, 2022 - 12:00 am
in Bitcoin
A Bitcoin 401(k) Revolutionary

Amid the bear market, the financial services firm Fidelity Investments announced it is giving companies the ability to allow employees to invest up to 20% of their retirement savings in Bitcoin (BTC). However, financial analysts have raised concerns about such a development.

Recently, BTC hasn’t shown much green on its price chart. Its drop in value has attracted a lot of attention, having fallen more than 50% since its all-time high in November 2021, and some are wondering if the sell-off will affect the broader crypto-economy.

BTC price has gently stabilized around $28,000-$30,000 for the past few days. This could be the best time to buy the dip for its die-hard, risk-tolerant supporters like El Salvador President Nayib Bukele. Amidst this, Fidelity Investments announced now it allows corporate employees to invest up to 20% of their 401(k)s in BTC, meaning anyone interested in acquiring Bitcoin for their 401(k) should first check if their employer offers it.

Fidelity Investments Dave Gray, Head of Workplace Retirement Offerings and Platforms, explained:

There is growing interest from (retirement) plan sponsors for vehicles that enable them to provide their employees access to digital assets in defined contribution plans, and in turn from individuals with an appetite to incorporate cryptocurrencies into their long-term investment strategies.

Gray also noted that any company with employees interested in digital currencies like BTC as part of the long-term financial system revolution should consider the product. However, he cautioned against using it as a short-term bet on crypto returns.

However, not everyone welcomed this development. Madeline Hume, a senior research analyst at Morningstar, strongly opposed investing any portion of a 401(k) in cryptocurrency even before BTC’s significant drop in value. On April 27, she wrote in a note:

While Morningstar is not against cryptocurrency—and full disclosure, I own some bitcoin—Fidelity’s strategy for capitalizing on the crypto momentum is misplaced. At this stage, mixing bitcoin and 401(k) plans is a terrible idea.

Additionally, on Friday, Rep. Byron Donalds proposed a bill to the United States House of Representatives that would allow Americans to add BTC to their 401(k) retirement plans. The bill is being pushed by Senator Tommy Tuberville of Alabama and supported by Republicans.

Tags: BitcoinCrypto
Favour Ajibade

Favour Ajibade

Favour Ajibade is a content writer and crypto lover from Nigeria who is passionate about introducing Web3 and cryptocurrency-based technologies to the world through writing. He was first introduced to crypto in 2020 and was immediately intrigued. He is a student biomedical researcher and enjoys spending his free time reading and learning new things.

Related Posts

Green Minerals headquarters and Bitcoin symbol representing strategic investment deal

Bitcoin Inflows From 2024-2025 Break 15-Year Record, Hitting $625B

September 15, 2025

Bitcoin on-chain inflows reached $625B in 1.5 years, outpacing 15 years of growth. Institutional demand and Fed policy...

Wall Street financial district with Bitcoin symbol representing institutional adoption

Wall Street Veteran Jordi Visser Predicts Big Bitcoin Allocation Boost by Year-End

September 14, 2025

Jordi Visser forecasts US institutions will increase Bitcoin allocations before year-end, boosting Q4 demand and setting up portfolios...

China Renaissance invests $100M in BNB through MoU with YZi Labs

China Renaissance Commits $100M to BNB in Landmark Treasury Move

August 22, 2025

China Renaissance invests $100M in BNB, signing MoU with YZi Labs to push adoption and regulated listings in...

BlackRock CEO Larry Fink speaking at the World Economic Forum

Bitcoin’s biggest Wall Street backer takes the wheel at World Economic Forum

August 15, 2025

BlackRock CEO Larry Fink joins André Hoffmann as interim co-chair of the WEF board, signaling stronger ties between...

View All
BTC-Pulse LogoTransparent

© 2024 BTC-PULSE. Disclaimer: The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

Info

  • Learn
  • Price Prediction
  • Events
  • Press Releases
  • Sitemap

Company

  • About Us
  • Terms of Service
  • Privacy Policy
  • Contact Us
  • Advertise

News

  • Altcoins
  • Bitcoin
  • Ethereum
  • NFT
  • Regulation
  • WEB 3.0

©2024 BTC-PULSE – All right Reserved.

No Result
View All Result
  • About Us
  • Advertise
  • BTC-PULSE
  • Contact Us
  • Events
  • Privacy Policy
  • Sitemap
  • Terms of Service