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Fidelity Lets Customers Fund Their 401K With Cryptocurrencies

Not long ago, Fidelity Investments announced that clients would be able to invest in cryptocurrencies like bitcoin through their 401K and retirement accounts. Additionally, several companies offering 401Ks to their employees could soon see these individuals buying assets like BTC, ether, and perhaps even Dogecoin through their company-funded retirement profiles.

Fidelity advances with encryption

The news was very well received in the crypto space, with many analysts saying it would be a big step towards mainstream status and legitimacy. Financial advisor Ric Edelman, founder of the Digital Assets Council of Financial Professionals, announced in a statement:

This will be remembered as a pivotal moment in the evolution of cryptocurrencies. For the average American worker, their only place to save for retirement is through a company retirement plan. Millions of workers will now start buying bitcoins they would never have otherwise.

However, while Fidelity appears to be implementing various cryptocurrency retention options for its 401K customers, there are a number of individuals and industry leaders who claim that companies are unlikely to use or implement cryptocurrency withdrawal options for employees. Therefore, people who gain access to 401K Fidelity accounts through their companies may not yet have access to bitcoin or its altcoin cousins.

The fact is that it is still a very speculative industry, and many companies are concerned about the well-being of their workers. They don’t want them to pour money into a space that could end up scraping the bottom of the financial barrel the next day. Bitcoin and many other forms of cryptocurrency remain highly volatile, meaning their prices are extremely difficult to predict. These changes come with little to no signal and therefore companies may not want to take the risk right away.

Now, several retirement professionals are emerging to say that if one is really going to fund their retirement accounts with cryptocurrencies through Fidelity, one should take the necessary precautions and expect a little up and down behavior from time to time. . One such figure is Rob Greenman, a financial advisor at Vista Capital Partners. He commented:

Returns are based purely on speculation in the hope that some future buyer will be willing to pay a higher price than the purchase price.

What makes investing in cryptocurrencies risky during retirement is that these funds are most often used to take care of yourself when you are elderly or sick. Therefore, this money is often set aside for medical bills and utility payments, especially when you are no longer of working age.

Crypto can balance some things

Financial advisor Jim Shagawat of Advice Period also did his part, saying about cryptocurrencies:

They don't behave in the same way as stocks, bonds, gold or commodities, so adding them to your investment mix can increase return and reduce risk.
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Fidelity Launches Multi-Level Learning Center in Metaverse

Fidelity Investments, a leading financial services company with $11.3 trillion in assets under management, entered the metaverse with the opening of an eight-story learning center and the launch of a metaverse exchange-traded fund (ETF). Fidelity Stack features “a multi-level layout complete with a lobby, dance floor, and rooftop garden for users to explore on foot, or even by teleportation.”

Fidelity enters the metaverse

Fidelity Investments on Thursday announced the grand opening of “The Fidelity Stack,” which the exchange described as its “first immersive metaverse experience designed to offer a new way to learn the basics of investing.” Fidelity is one of the largest financial services companies; it currently has $11.3 trillion in assets under management.

Fidelity Stack is an eight-story building in the metaverse where visitors can learn about different ways to invest. An entire floor is dedicated to providing information on the Fidelity Metaverse ETF (FMET), the company’s new exchange-traded fund focused on metaverse investments. Fidelity explained:

Built in Decentraland, the Fidelity Stack features a multi-level layout complete with a lobby, dance floor, and rooftop garden for users to explore on foot, or even by teleportation.

“In Invest Quest on The Fidelity Stack, users are challenged to walk the building learning the basics of ETF investing while collecting ‘orbs’ along the way,” the ad continues.

Decentraland is an Ethereum-based metaverse open to the public in January 2020. In February, global investment bank JPMorgan chose Decentraland as the metaverse platform to open its lounge.

Kathryn Condon, director of marketing channels and emerging platforms at Fidelity, commented:

The way we relate to each other and our money is changing rapidly, whether it is due to the rise of blockchain technology or the development of a new digital universe. Our foray into the metaverse was designed with that in mind.

Last month, Citi predicted that the metaverse could be a $13 trillion opportunity with five billion users by 2030. Global investment banks Goldman Sachs and Morgan Stanley believe the metaverse is a $100,000.8 trillion opportunity.