Fidelity To Allow Retirement Savings allocation to Bitcoin in 401(K) Accounts

I think this is great news! Fidelity Investments said on Tuesday it will allow individuals to allocate part of their retirement savings in bitcoin through their 401(k) investment plans, becoming the first major retirement plan provider to do so.

Fidelity Investments Inc., commonly referred to as Fidelity, earlier as Fidelity Management & Research or FMR, is an American multinational financial services corporation based in Boston, Massachusetts. The company was established in 1946 and is one of the largest asset managers in the world with $4.5 trillion in assets under management, now as of December 2021 their assets under administration amount to $11.8 trillion.[5][6] Fidelity Investments operates a brokerage firm, manages a large family of mutual funds, provides fund distribution and investment advice, retirement services, index funds, wealth management, cryptocurrency, securities execution and clearance, asset custody, and life insurance

A private venture capital firm, F-Prime Capital Partners, managed on behalf of owners and other key leaders of Fidelity Investments, has been described as directly competing with Fidelity Investments public funds. A 2016 Reuters investigation identified multiple cases where F-Prime Capital Partners was able to make investments at a fraction of the price of Fidelity Investments. Because of SEC regulations, investments by F-Prime Capital Partners preclude Fidelity from making the same early investments. The investigation describes that this competition forces Fidelity to delay investing until later and at much higher prices than F-Prime Capital Partners, resulting in lower returns for Fidelity fund shareholders.

Corporate governance experts have stated that the practice is not illegal, but that it poses a clear corporate conflict of interest.[46] Fidelity spokesmen have stated that they are following all laws and regulations.

The same Reuters investigation documents six cases (out of 10) where Fidelity Investments became one of the largest investors of F-Prime Capital companies after the start-up companies became publicly traded. Legal and academic experts said that major investments by Fidelity mutual funds - with their market-moving buying power - could be seen as propping up the values of the F-Prime Capital investments, to the benefit of Fidelity insiders.

Fidelity declined to comment on this aspect of the investigation

Be Creative and kind!
Connect on:
Instagram: https://www.instagram.com/themcclonebrothers/
Twitter: https://twitter.com/themcclonebrot1
LinkedIn: https://www.linkedin.com/in/themcclonebrothers/

@Tim McClone ​