After a year-long trial, Digital Asset Investment Management (DAiM), a US-based crypto investment advisor, launched the first company-sponsored pension plans to support Bitcoin.
DAiM will act as an advisor and trustee, helping companies create a 401 (k) plan that, according to an announcement on Thursday, allows for a maximum allocation of up to 10% in Bitcoin with varying degrees of exposure to traditional assets.
Cryptocurrency related to the Employee Retirement Income Security Act (ERISA) -compliant plans is stored in the New York-regulated Gemini Trust refrigerated chamber.
"From the moment we were approved by the State of California in June 2018, we've seen incredible demand from individuals looking to invest bitcoin in 401 (k) s," DAiM said in the announcement, adding that conventional plans can't. Keeping up with inflation is bad business for savers.
Individuals can, after consulting DAiM, opt for greater exposure to Bitcoin and can transfer pension Bitcoins in the event of a job change. Companies can switch from their current provider to the Bitcoin plans if they wish.
Companies interested in bringing the new product to employees in 2021 must implement the plan by mid-December 2020, DAiM said.
"We believe Bitcoin has shown that it has a place in the modern portfolio and that individuals should be able to 'go zero' and invest directly through their retirement accounts," the company said.