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Fidelity Investments breaks new ground! Workers can now allocate retirement funds to invest in Bitcoin, supported by MicroStrategy.

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Fidelity Investments breaks new ground! Workers can now allocate retirement funds to invest in Bitcoin, supported by MicroStrategy.

The largest retirement plan provider in the United States, Fidelity Investments, is planning to allow investors to choose Bitcoin as an option for their retirement funds, enabling a certain percentage of funds to be allocated to a Bitcoin account. Following the announcement of this plan, it immediately gained support from the CEO of MicroStrategy, who believes that Bitcoin will become the perfect asset for retirement plans.

Bitcoin Becomes an Option for Retirement Plans

According to a report by the Wall Street Journal, if employers allow it, employees of the 23,000 companies that use Fidelity Investments retirement accounts will be able to choose to invest part of their retirement savings in Bitcoin later this year.

The support for Bitcoin by the largest provider of retirement plans in the United States indicates the gradual move of cryptocurrencies towards mainstream adoption, with Fidelity estimating that around 80 million individual American investors own or have invested in digital currencies.

"Our investors need diversified products and investment solutions, and we are quite hopeful that cryptocurrencies can shape the way future generations view short-term and long-term investments," said Dave Gray, head of Fidelity's retirement products and platform.

Fidelity currently allows up to 20% of retirement savings to be invested in Bitcoin, but this percentage may be adjusted in the future, with plans to offer a wider range of crypto assets.

However, the success of this initiative remains to be seen. The U.S. Department of Labor, which oversees retirement plans offered by companies, warned employers in March this year to be extra cautious when considering adding cryptocurrency options to their 401(k) plan investment lineup, emphasizing the need to evaluate their actions based on the prudent and loyal duties under the U.S. retirement law.

Note: The 401(k) retirement benefit plan is a tax-deferred retirement account established in the United States in 1981, with relevant regulations stipulated in Section 401(k) of the U.S. tax law, hence the abbreviation 401(k) plan.

MicroStrategy's Strong Support

Following this news, MicroStrategy CEO Michael Saylor also announced support for this move on Twitter, allowing employees to add Bitcoin to their 401(k) investment portfolios.

In an interview with CNBC, Michael Saylor reiterated his strong bullish stance on Bitcoin: "Bitcoin is a digital asset, making it a perfect asset for retirement plans. Its risk is lower than bonds, stocks, commercial real estate, and gold. It was built for this purpose."