Newport Beach, Calif.-based asset manager Digital Asset
Investment Management (DAiM), which bills itself as the first licensed
Registered Investment Advisor for Bitcoin and Digital Assets, has launched what
it is calling “the first ERISA compliant employer-sponsored 401k plans with
Bitcoin.”
It should be noted that San Francisco-based Bitwage launched
what it touted as “the world’s first Bitcoin 401k plan” in May 2020.
According to a Nov. 19 announcement, DAiM will serve as the
3(38) advisor and fiduciary and is responsible for selecting, managing,
monitoring, and benchmarking the investment offerings, helping companies
“create a 401k plan that offers several recommended model portfolios of varying
risk to traditional assets and allocation of up to 10% to Bitcoin.”
“From the moment we were approved by the State of California
in June 2018, we’ve seen incredible inbound demand from individuals eager to
invest Bitcoin in 401ks,” said Adam Pokornicky, COO of DAiM.
Pokornicky told Cointelegraph, a website covering fintech,
blockchain and Bitcoin, that there is “booming” demand for retirement
investments in Bitcoin, adding that the most demand is from individuals between
the ages of 28-45.
“Conventional 401k plans are restrictive and often lack
investment options, causing participants to not only be frustrated but have
poor risk-adjusted returns that barely keep up with the rate of inflation. This
is a bad deal for savers given the current environment. We believe Bitcoin has
demonstrated it has a place in the modern portfolio and individuals should have
an opportunity to ‘Get Off Zero’ and invest directly through their retirement
account,” Pokornicky added.
“We executed the very first employer-sponsored 401k plan in
October 2019 and have been diligently testing for the past year, now allowing
us to launch scalable 401k plans that provide recordkeeping and administrative
services,” he said. “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 401k plans in this way.”
Bitcoin will be held securely in Institutional Cold Storage
Custody with Gemini Trust, DAiM’s partner for its primary Investment Advisory
services. Should the employee leave their company, their Bitcoin will be able
to transfer with them. And should an individual want to allocate more to
Bitcoin, they can schedule an investment consultation with DAiM.
The announcement said DAiM is able to work with companies of
any size, to either switch plans from their current provider or by implementing
a first-time employer-sponsored 401k plan with key tax credits.
According to DAiM, companies interested in offering their
employer-sponsored 401k plan with Bitcoin in 2021 need to put the plan in place
by mid-December of this year. Companies interested in exploring this service
can apply https://www.daim.io/Bitcoin401k or by emailing hq@daim.io.
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