Fidelity still goes against its crypto offerings

A few months ago, Fidelity – one of the world’s largest retirement account companies – announced that it would allow customers to put some of their retirement savings into digital currencies like Bitcoin and Ethereum.

Fidelity rubs Senators the wrong way

This news witnessed the storming of many traders and investors. Sure, this would make all crypto legitimate and public, but it also rubbed a lot of people the wrong way, especially Democratic senators. They ridiculed the idea that money normally used when one was old, incapable or unable to work could be put into the speculative, risky, and untrustworthy asset class, and they took a serious problem with Fidelity and its most recent offerings.

Among senators in particular (Not a surprise here) Elizabeth Warren of Massachusetts. Richard Durbin from Illinois. and Tina Smith from Minnesota. They all wrote a letter together and sent it to Fidelity asking what the company was thinking and asking them to retract the decision as soon as possible.

The message states:

As one of the largest 401(k) providers, Fidelity (must be aware) of the precarious position of Americans’ retirement savings. While the average balance for a 401(k) is $129,157, the average balance for 401(k) accounts is only $33,472. With Americans today living longer than ever before, it’s clear that far too many retirees are likely to hold out more than their balances during their golden years… This begs the question: When saving for retirement is a challenge for many Americans, why does Fidelity allow Who can save to be exposed to an untested and highly volatile asset like Bitcoin? Perhaps most disturbingly, when referring to the risks of investing in Bitcoin on their website and planning to limit the exposure of Bitcoin plan participants to 20%, Fidelity admits that it is aware of the risks associated with investing in Bitcoin and digital assets yet to move forward on any case.

Dave Gray – Head of Workplace Retirement Offers with Fidelity – responded to the letter, saying:

There is a growing interest from plan sponsors for vehicles that enable them to provide their employees with access to digital assets in defined contribution plans, and thus from individuals who have an appetite for incorporating cryptocurrencies into their long-term investment strategies.

Is this the right time?

While we can’t deny that Fidelity is moving in an innovative direction, there is also some concern that the crypto world is still sinking into peril, so now might not be the best time to give retirees a chance to invest in cryptocurrencies.

For example, Bitcoin has lost more than 60 percent of its value over the course of a few months and has fallen from $68,000 to about $23,000 at press time, and the crypto world in general has lost nearly $2 trillion in valuation.

Tags: bitcoin, elizabeth warren, fidelity

#Fidelity #crypto #offerings

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