Fidelity is evaluating whether to offer Bitcoin to its individual investors, says a Wall Street Journal report. The Boston-based firm launched a Bitcoin-trading business for hedge funds and other institutional investors in 2018. Earlier this year, Fidelity allowed corporate clients to add digital assets to the 401(k) retirement plans it manages for them.
It’s now working toward bringing crypto to its more than 34.4 million brokerage accounts. Mike Novogratz, Galaxy Holdings Ltd’s CEO, revealed on Monday that Fidelity is going to shift their retail customers into crypto soon enough. But Fidelity hasn’t shared such plans with its clients yet.
It should be noted that anything the firm does to expand crypto’s reach to individual investors is likely to draw Washington’s attention. The US Department of Labor had shared concerns about companies’ decisions to allow its employees to invest in cryptocurrencies through their Fidelity retirement plans. It asked plan fiduciaries to exercise extreme care before they consider adding a cryptocurrency option to a 401(k) plan’s investment menu for plan participants. The Department of Labor outlined speculation and volatility as well as high valuation. Moreover, a number of US senators raised questions about the plan. They fear it risks inherent investment savings in such risky assets.
Dave Gray, head of workplace retirement offerings and platforms at Fidelity Investments, highlighted the growing interest from plan sponsors for vehicles that enable them to provide their employees access to digital assets in defined contribution plans, as well as from individuals with an appetite to incorporate cryptocurrencies into their long-term investment strategies.