US-Based Firm Launches Company-Sponsored Bitcoin Retirement Plans
Another day of bullish market, another bitcoin (BTC) first in the world.
DAiM Unveils BTC-Based Employer-Sponsored 401k Retirement Plans
In yet another development showcasing the steady adoption of the premier cryptocurrency, US-based asset management firm DAiM recently announced the launch of the country’s first employer-sponsored retirement plans that support BTC investments.
According to the official press release, DAiM will function as the advisor and fiduciary in helping companies “create a 401(k) plan that offers several recommended model portfolios of varying risk to traditional assets and allocation of up to 10% to Bitcoin.”
Notably, the bitcoin will be held in a secure manner in cold storage by Gemini Trust, enabling DAiM to transfer BTC to employees who have left the companies.
It’s also worthy of note that DAiM’s ambitious BTC plans are fully compliant with the Employee Retirement Income Security Act of 1974. The plan will be offered by employers next year onwards, the press release adds.
Commenting on the development, Adam Pokornicky, COO, DAiM, noted:
“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. Conventional 401(k) plans are restrictive and often lack investment options, causing participants to not only be frustrated but have 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 Bitcoin 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.”
Speaking to Cointelegraph, Pokornicky acknowledged the “booming” demand for the top cryptocurrency, stating that the firm has witnessed the most demand for the budding asset class from those aged between 28-45.
Bitcoin Adoption on the Rise
With companies such as Microstrategy and Square adding BTC on to their balance sheets as reserve assets, bitcoin has finally cemented itself as a legitimate asset class despite the global financial regulators’ continual reluctance.
Recently, BTCManager reported that US-based passport services provider Peninsula Visa announced that it would be accepting payments in BTC for select passport services.