I love Bitcoin as you all know and I have bought GBTC in my IRA accounts. Now the very bullish news just broke out for Bitcoin, which should have a fundamentally strong long term wealth building effect for Americans. Actually I have thought about an idea for quite some time that Bitcoin may be one of the few only options available that may help solve the pension deficit crisis. Fidelity's move may be in a way to prove that!
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We'll wrap up today with a huge development from Fidelity. The brokerage giant just announced that it will allow investors to buy Bitcoin in their 401(k) retirement accounts. I can't overstate how big of a deal this is.
As we discussed last week, Fidelity is the largest traditional stock brokerage in terms of total accounts. In fact, Fidelity boasts 33.2 million client accounts.
So this announcement will put Bitcoin in front of millions of investors who may not have considered it before.
To be clear, it's just an option. Investors don't have to buy Bitcoin in their 401(k) if they don't want to. But to me, holding Bitcoin inside of a tax-advantaged account is a great way to go.
Perhaps it's no surprise that Fidelity's rollout will start with MicroStrategy.
MicroStrategy is an information technology (IT) company. But its chief executive officer (CEO), Michael Saylor, got the Bitcoin bug a few years ago and moved $425 million of the company's cash reserves into Bitcoin.
Saylor has since borrowed against the company's assets to invest even more heavily into Bitcoin. As I write, MicroStrategy owns 129,218 bitcoins. That's worth just over $5 billion today.
So Fidelity is starting with MicroStrategy's 401(k) services. And by summer, Bitcoin will be available to all of Fidelity's clients worldwide.
This is wildly bullish for Bitcoin.
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