As a cryptocurrency Bitcoin BTC/USD gaining in price and interest from investors and newcomers to the industry, the coin is gaining more and more use cases from businesses. While some companies are adding Bitcoin to their balance sheets, like Tesla Inc. TSLA and Block Inc. SQthere are now two companies that will offer employees a way to invest in Bitcoin as part of their retirement plans.
What happened: Fidelity Investments has announced the launch of new 401(k) investments called digital asset accounts that will include access to invest a portion of retirement savings in Bitcoin, in what the company calls a first for industry.
Fidelity said there is growing demand from employers to provide access to bitcoin through 401(k) plans.
“Allowing interested employers to offer their employees access to Bitcoin via an investment option in their major 401(k) retirement plans on Fidelity’s secure platforms is an important step in advancing Fidelity’s position. Fidelity as a holistic digital asset service provider,” Fidelity said.
The first company to take advantage of the new pension plans will be MicroStrategie Inc MSTR, a company that is no stranger to Bitcoin. The company is run by Bitcoin bull Michael Saylor and added Bitcoin to his holdings.
“MicroStrategy looks forward to working with Fidelity to become the first public company to offer its employees the ability to invest in Bitcoin through our 401(k) program,” Saylor said.
Saylor Told CNBC that MicroStrategy employees had requested Bitcoin as an option for their retirement accounts.
“It’s less risky than bonds, stocks, commercial real estate, than gold — it was kind of built for that,” Saylor said.
Fidelity’s plan is expected to be available to employers by mid-2022.
Related link: How to buy bitcoins
Why it matters: Fidelity is one of many financial companies that have expanded their offerings in the cryptocurrency space.
The company explored Bitcoin mining in 2014 and launched its first commercial offering in the space in 2018 called Fidelity Digital Assets. The offering provided custody and trade execution for digital assets like Bitcoin for institutional investors.
Fidelity also launched a private Bitcoin fund in 2020 which is available to accredited investors.
Fidelity is one of the largest money management companies with $11.3 trillion in assets under administration.
Price action: Bitcoin is priced at $38,488.89 on Sunday afternoon, trading flat for the past 24 hours.