After running a year-long test, Digital Asset Investment Management (DAiM), a U.S.-based crypto investment adviser, has launched what it says are the first company-sponsored retirement plans supporting bitcoin.
Cryptocurrency associated with the Employee Retirement Income Security Act (ERISA)-compliant plans will be held in New York-regulated Gemini Trust's cold storage custody.
"From the moment we were approved by the State of California in June 2018, we've seen incredible inbound demand from individuals eager to invest bitcoin in 401(k)s," DAiM said in the announcement, adding that conventional plans' inability to keep up with inflation is a bad deal for savers.
Individuals can choose to take a bigger exposure to bitcoin following a consultation with DAiM and will be able to transfer pension bitcoins in the event of a job switch. Companies can switch to the bitcoin plans from their current provider if desired.
Firms interested in offering the new product to employees in 2021 need to put the plan in place by mid-December 2020, DAiM said.
"We believe [b]itcoin has demonstrated it has a place in the modern portfolio and individuals should have an opportunity to 'Get Off Zero' and invest directly through their retirement account," the company said.
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