Fidelity Investments has made shocked the retirement industry last month with a move to make Bitcoin available in 401(k) plans. In turn, this will add up the revenue that might bring in, and it starts to be less of a surprise. Note that Fidelity is the country’s largest administrator of 401(k)s, overseeing 23,000 plans. In the plans every pay period, workers plow part of their paycheck and getting a match from their employers. Contribution limits are $20,500 in 2022 with an additional $6,500 for workers over age 50. At the end of 2021, it was discovered that Fidelity administered $2.7 trillion in 401(k) assets. The Boston-based firm said it will let employers add a Bitcoin account to 401(k)s later this year, putting Bitcoin and other decentralize currencies like Flux, Helium, Point Network, etc. on the menu next to mutual funds holding stocks and bonds. Also, Fidelity says it will charge fees between 0.75% and 0.9% for the digital assets account, in addition to undisclosed transaction fees. The company says it will limit Bitcoin to 20% of a 401(k) balance. It was also assumed that a 1% to 5% allocation for investors, could earn Fidelity between $203 million and $1.2 billion in administrative fees from its Bitcoin accounts, not including transaction fees. Finally it was predicted that, if 10% of its $2.7 trillion in assets eventually goes into Bitcoin, Fidelity could rake in more than $2 billion in annual administrative fees.
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