Fidelity will allow workers to invest up to 20% of their 401(k) savings directly in bitcoin through the standard investment options menu, making it the first in the industry to offer cryptocurrency investments without a separate brokerage window. This comes as cryptocurrencies move more into the mainstream. However, the U.S. government has warned retirement plans to exercise extreme care with such offerings given the high volatility of cryptocurrencies and their lack of a clear inherent worth. Bitcoin in particular has seen double-digit price plunges in a single day multiple times in the last year alone, whereas the S&P 500 index has only had two such declines in the past 50 years.

1. 401(K) PLAN
INVESTMENTS IN
"CRYPTOCURRENCIES

2. More workers may soon be able to stake some of
their 401(k) retirement savings to bitcoin, as
cryptocurrencies crack even deeper into the
mainstream

3. R e t i r e m e n t g i a n t F i d e l i t y s a i d
T u e s d a y t h a t i t ’ s l a u n c h e d a
w a y f o r w o r k e r s t o p u t s o m e o f
t h e i r 4 0 1 ( k ) s a v i n g s a n d
c o n t r i b u t i o n s d i r e c t l y i n
b i t c o i n , p o t e n t i a l l y u p t o 2 0 % ,
a l l f r o m t h e a c c o u n t ’ s m a i n
m e n u o f i n v e s t m e n t o p t i o n s

4. Fidelity said it’s the first in the industry to allow such
investments without having to go through a separate brokerage
window, and it’s already signed up one employer that will add
the offering to its plan later this year.

5. 75%
Total Profit Rising Trend
Fidelity’s offering may be one of just a few for a
while, given the substantial concerns about the
riskiness of cryptocurrencies

6. The U.S. government last month warned the
retirement industry to exercise “extreme care” when
doing something like this, highlighting how
inexperienced investors may not appreciate just
how volatile cryptocurrencies can be, among other
concerns.

7. Bitcoin had five days in the last year where it
plunged by at least 10%. The stocks in the S&P
500, meanwhile, had only two such drops in the
last 50 years.

8. Beyond its volatility, there’s still
fundamental disagreement about how
much a bitcoin is worth, or even if it’s
worth anything at all.

9. In recent months, the Department of Labor has become
aware of firms marketing investments in
cryptocurrencies to 401(k) plans as potential investment
options for plan participants.
The Department cautions plan fiduciaries
to exercise extreme care before they
consider adding a cryptocurrency option
to a 401(k) plan's investment menu for
plan participants.

10. THANK
YOU