According to Fidelity, its DAA account holds both Bitcoin and short-term money market investments for the purpose of providing the liquidity necessary for the account to facilitate daily transactions on behalf of the investor.
Fidelity’s decision to offer access to Bitcoin through its newly formed DAA is a significant step in making digital assets such as Bitcoin more accessible to investors and, therefore, a more viable investment option in the traditional investing space.
In addition to its speculative and volatile nature, the DOL said that the lure of a cryptocurrency’s potential to offer outsized profits can cloud an investor’s ability to make informed, prudent investment decisions, especially when it involves their retirement investments.
“There is growing interest from plan sponsors for vehicles that enable them to provide their employees access to digital assets in defined contribution plans, and in turn from individuals with an appetite to incorporate cryptocurrencies into their long-term investment strategies,” said Dave Gray, head of workplace retirement offerings and platforms at Fidelity.
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