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US Fidelity Allows Bitcoin Investment in Retirement Pension…

(provided by Fidelity)

Fidelity Investments, a large US asset manager, will allow members to invest up to 20% of their personal superannuation accounts in Bitcoin. Fidelity is the largest retirement pension manager in the United States, managing 23,000 defined contribution retirement plans (401k).

On the 26th (local time), Fidelity Investments announced that it would add an option within the year to allow 401(k) users of the U.S. retirement pension system to invest in Bitcoin from their personal accounts. It is the first time for a large Wall Street asset management company to offer Bitcoin, a virtual currency, as an investment object along with traditional financial products such as stocks, bonds, and target date funds (TDFs).

The 401(k), one of the US retirement pension management systems, is a type of pension in which the company additionally accumulates a certain amount of annual salary along with the payment of the employee, and the employee is responsible for managing the payment. 401(k) subscribers can invest in insurance, stocks, bonds, and funds by instructing financial companies such as banks, insurance companies, and securities companies on how to manage them. As a result, the amount of pension benefits received by individuals fluctuates. Managers that manage workers’ retirement pensions manage 401(k) through contracts with various securities companies. Retirement pension-related assets managed by Fidelity are approximately $2.9 trillion, accounting for more than a quarter of total retirement pension-related assets.

Retirement pensions tend to focus on stability due to the nature of workers’ retirement funds, but concerns are also raised in that they allow investors to invest in highly volatile Bitcoin. The U.S. Department of Labor, the agency responsible for superannuation, said adding virtual asset options to superannuation management could expose pension investors to significant risks, such as speculation and volatility. Earlier, the U.S. Department of Labor warned pensioners to be “extremely cautious” last month, citing the speculative nature, price volatility, and high valuation of cryptocurrencies.

Bitcoin recovered 50 million won as of 4:00 pm on the 28th in a positive evaluation that Fidelity’s move will accelerate the entry and popularization of virtual currency into the mainstream. At the same time, Bitcoin is trading at 50,185,000 won, up 0.45% from the previous day. This is a decrease of nearly 7 million won compared to a month ago. On CoinMarketCap on the 28th, the price of 1 BTC (Bitcoin unit) recorded 57.23 million won as of 7:30 am. At the same time, Ethereum (-0.16%) and Ripple (-0.7%) both showed a downward trend compared to the previous day.

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Reference-www.mk.co.kr

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