Digital Asset Investment Management (DAiM), an asset management firm based in the U.S., has just launched the first employer-sponsored retirement plan in the U.S. Importantly, the retirement plan is going to support investments in Bitcoin. DAiM announced this on November 19, 2020, stating that it is going to help the firms to create the 401(k) retirement plans.
The announcement states:
“The plan will offer several recommended model portfolios of varying risk to traditional assets and allocation of up to 10% to Bitcoin.”
DAiM Plans Will Comply With Employee Retirement Income Security Act
Moreover, it is revealed that Gemini Trust’s cold storage will be used to store Bitcoin. This will also help DAiM to transfer Bitcoins to all those employees of the participating companies who already left the firm. Along with this, the firm has specified that its crypto-friendly plans are completely compliant with the Employee Retirement Income Security Act of 1974.
Earlier the employers couldn’t invest in Bitcoin while they were working with the company. To invest in Bitcoin, they had to either take the penalty or quit the job.
People Not Having Licensed Access to Bitcoin
Adam Pokornicky, COO at DAiM, has said that there have been very few advisors that offer licensed access to Bitcoin. People face a lot of difficulties to get Bitcoin directly to their brokerage or retirement account. He also mentioned the struggles of the company to get approval to provide employer-sponsored services. The firm is now having the proper infrastructure, framework, and partnerships to carry forward the service smoothly. According to Pokornicky, there has been a huge demand for retirement investments in Bitcoin, majorly from the age group of 28-45. This shows the interest of the young and middle generation in Bitcoin, as the older generation still prefers traditional money.