Cryptocurrency Retirements: US Investment Firm Launches Employer-sponsored Bitcoin 401 (k) Plan

The American company Digital Asset Investment Management (Daim) has announced the launch of a 401 (k) retirement plan sponsored by the company that allocates up to 10% in bitcoins. The plan is an ERISA-compliant employer-sponsored 401 (k) and assets are held in institutional-grade cold storage leveraging the Gemini Trust custodian.

Over the past few years, investors have been able to take advantage of a digital currency retirement plan in the form of an IRA. For example, the company Bitcoinira helps people invest in cryptocurrencies like BTC, BCH, ETH, and LTC with the company’s crypto-focused retirement funds. On Thursday, November 19, 2020, Newport Beach California-based Digital Asset Investment Management (Daim) revealed an employer-sponsored bitcoin 401 (k) plan that is ERISA compliant and involves an allocation in BTC.

“From the moment we were approved by the state of California in June 2018, we have seen incredible demand for participation from people eager to invest bitcoin in 401 (k),” said Adam Pokornicky, Daim’s chief operating officer during the launch. . “Conventional 401 (k) plans are restrictive and often lack investment options, leaving participants not only frustrated, but also having poor risk-adjusted returns that barely keep up with the rate of inflation”.

“This is a bad deal for savers given the current environment. We believe that bitcoin has proven that it has a place in the modern portfolio and people should have the opportunity to ‘get out of scratch’ and invest directly through their retirement account, “added the Daim executive.

According to Daim, the firm will be the advisor and trustee 3 (38) and will assist companies that want to offer the 401 (k). The plans have traditional assets along with an allocation of up to 10% in bitcoin (BTC). “Bitcoin will be held securely in institutional cold storage custody with Gemini Trust, our partner for our main investment advisory services. The California firm also explains what happens when an employee leaves a company and that it offers the bitcoin 401 (k) plan.

Daim reports the following:

“If the employee leaves his company, his Bitcoin can be transferred with him. And if a person wants to allocate or invest more in Bitcoin, they can schedule an investment consultation with Daim. “

Pokornicky also notes that Daim ran an employer-sponsored 401 (k) plan in October 2019 and has been testing for 12 months. Daim is now allowed to launch “scalable 401 (k) plans that provide administrative and record-keeping services.” “Daim is excited to lend our fiduciary capacity to enable access to Bitcoin in 401 (k) plans in this way,” Pokornicky shared.

Other companies offering bitcoin-related retirement services in addition to Daim and Bitcoinira include; Bitira, Coinira and Regal Assets. While the digital asset ecosystem continues to grow, concepts like retirement services have taken advantage of the growing crypto economy.

401 (k) plans provide employees with tax advantages and the US Internal Revenue Code allows 401 (k) or IRAs. With digital currency prices posting massive gains in recent days, a bitcoin-based 401 (k) can prove to have a much higher retirement yield compared to other assets.

The ingenuity and innovation of blockchain-bitcoin technology is reaching the retirement funds, after years of work, users and future investors can opt for this novel system, it is possible that in Latin America, companies of these services could found this type of consortium. Waiting for new announcements

Reference: news.bitcoin.com

Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.

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