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DAiM will work closely with the companies as their advisor in order to help them create a 401(k) plan with a Bitcoin allocation of up to 10%.
Digital Asset Investment Management alias DAiM has announced that it has launched the first Bitcoin-focused 401(k) plan in the United States. The firm, which prides being the first licensed Registered Investment Advisor for Bitcoin and Digital Assets noted that the new services are fully compliant with the Employee Retirement Income Security Act (ERISA).
“DAiM serves as the plan fiduciary and is responsible for selecting, managing, monitoring, and benchmarking the investment offerings,” the company noted in the press release.
On the Leadership Board
According to Adam Pokornicky, COO of DAiM, since the inception of the company two years ago, there has been a huge demand for bitcoin-focused 401(k) plan around the country. Traditionally, the 401(k) retirement plan has not offered employees diversified investment options. As a result, the returns are fixed and mind due the dollar is depreciating at a fast rate as the Fed floods the market with new dollar bills to offset the coronavirus crisis.
Pokornicky noted that Bitcoin has demonstrated beyond a reasonable doubt that it can withstand market pressures thus a good store of value.
Notably, the firm launched its first employer-sponsored 401(k) plan in October 2019 to test its market viability. Henceforth, DAiM has opted to scale the test program all over the United States with Bitcoin at the center stage.
“We’re proud to be a leader in regulated Investment Management services for Bitcoin and are excited to lend our fiduciary capacity to enable access to Bitcoin in 401(k) plans in this way,” states Pokornicky in the press release.
DAiM 401(k) Bitcoin Plan
Apparently, DAiM will work closely with the companies as their advisor in order to help them create a 401(k) plan with a Bitcoin allocation of up to 10%. Notably, the allocated Bitcoins will be held by Gemini Trust in cold storage custody.
Therefore ensuring the customers’ funds are safe from the highly risky crypto market and more importantly accessible if need be. Particularly, the DAiM noted should any employee leave the company and need to access their stored Bitcoins, it will be made instantly to them. In addition, the cold storage is readily accessible if the customers want to allocate more Bitcoins in their 401(k) plan.
Notably, DAiM has noted that interested customers who need to have a Bitcoin focused 401(k) plan by next year should arrange the plans by mid-December, 2020.
This is a huge breakthrough both for Bitcoin and the crypto industry at large. It is a clear indication that regulators have accepted Bitcoin and the crypto industry is here to stay and should embrace it for good.