The launch comes as the demand for people looking to invest Bitcoin in 401(K) increases
US firm launches company-sponsored Bitcoin retirement plans. Source: pexels.com
Digital Asset Investment Management (DAIM) has launched the initial ERISA complaint employer-sponsored 401(K) plans with Bitcoin.
In this investment offering, DAIM will be responsible for monitoring, managing, and benchmarking the investment as well as serve as the planning trustee.
Other 401(K) plans cause frustration among participants as they lack investment options and are restrictive. They also offer poor-risk adjustment returns. Given the current economic conditions, savers often get a raw deal out of this.
The initial employer-sponsored 401(K) was executed in October 2019. It has also been tested this year, allowing the scalable 401(K) plans to be launched.
While serving as the financial trustee, DAIM will offer recommended risk model portfolios to companies. These should be of different risks and an allocation of up to 10% to Bitcoin.
If the partner chooses to leave their company, their Bitcoin will be transferred with them. Also, individuals looking to allocate more Bitcoin will be assisted by DAIM through an investment consultation.
DAIM will work with companies of any size. Companies interested in this offering need to put in plans by mid-December this year.
We’ve reported that Coinbase will allow its US customers to borrow cash against as much as up to 30% of their Bitcoin holdings.
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