Fidelity should reconsider allowing retail clients exposure to bitcoin in their retirement accounts in light of the FTX collapse, said three Democratic Senators in a letter on Monday.
The U.S. based financial services firm said in April that it wanted to allow investors to put bitcoin in their 401(k)s. Fidelity’s retirement accounts are big business: The company had an estimated $2.4 trillion in 401(k) assets in 2020, or more than a third of the total U.S. market at that time, according to research firm Cerulli Associates.
The Senators – Richard Durbin (D-Ill.), Elizabeth Warren (D-Mass.), and Tina Smith (D-Minn.) – had previously expressed their trepidation over the plan in July, and the Department of Labor had similar concerns in April.
(by Camomile Shumba)