Fidelity Investments to allow investors to put bitcoin in their 401(k)'s

Financial services firm Fidelity Investments has announced that retirement savers can now start putting cryptocurrency into their 401(k) accounts.

Video transcript

RACHELLE AKUFFO: Welcome back to Yahoo Finance Live, everyone. Bitcoin taking another step towards mainstream adoption. Fidelity Investments is now allowing investors to put the cryptocurrency in their 401(k)s. It's the first retirement provider to do so. It will become an option later this year for the 23,000 companies that use Fidelity for their retirement plans. And it remains to be seen whether employers will choose to include it.

Through the plan, savers will be able to allocate up to 20% of their 401(k) toward Bitcoin. MicroStrategy, a business intelligence firm and a major Bitcoin backer, is the first employer to sign on to the plan. But the move may catch the eye of the Labor Department, which released a warning about including crypto in 401(k)s this month, following similar concerns from the Biden administration about fiduciary duties and clarity on the risks involved.