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After running a year-long test, Digital Asset Investment Management (DAiM), a U.S.-based cryptocurrency investment advisor, launched what it claims to be the first company-sponsored retirement plans to support bitcoin.
DAiM will act as an advisor and trustee as it helps companies create a 401 (k) plan that allows for a maximum allocation of up to 10% in bitcoin along with varying degrees of exposure to traditional assets, according to an announcement Thursday.
The cryptocurrency associated with the Erisa (Employee Retirement Income Security Act) compliant plans will be held in the cold custody of the Gemini Trust regulated by New York.
“Since we were approved by the State of California in June 2018, we have seen incredible inbound demand from individuals eager to invest bitcoin in 401 (k) s,” DAiM said in the announcement, adding that the conventional plans’ inability to keep up with inflation is bad business for savers.
Individuals can choose to take on greater bitcoin exposure after consultation with DAiM and will be able to transfer retirement bitcoins in the event of a job change. Businesses can switch to bitcoin plans from their current provider if they wish.
Companies interested in offering the new product to employees in 2021 must put the plan in place by mid-December 2020, DAiM said.
“We believe [b]itcoin has proven to have a place in the modern wallet and people should have the opportunity to “Get Off Zero” and invest directly through their retirement account, “the company said.
