California-based investment advisor for digital assets, DAiM announced the launch of the first employer-sponsored Bitcoin retirement plans in the US. DAiM is a licensed investment advisor for Bitcoin and other digital assets.
According to the official announcement, the investment advisor will serve as the plan fiduciary, and it will be responsible for the selection, benchmarking, and management of the investment offerings. DAiM will help companies create a 401(k) plan with up to 10% of asset allocation to Bitcoin.
The company partnered with Gemini Trust for institutional cold storage custody of digital assets, and the Bitcoin related to the newly launched retirement plans will be held in Gemini Trust. According to DAiM, new crypto plans are compliant with the Employee Retirement Income Security Act of 1974.
Commenting on the matter, Adam Pokornicky, COO at DAiM, said: “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. We executed the very first employer-sponsored 401(k) plan in October 2019 and have been diligently testing for the past year, now allowing us to launch scalable 401(k) plans that provide recordkeeping and administrative services. 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.”
Significant Demand
The investment advisor plans to solve issues related to the conventional retirement plans including lacklustre investment options with low returns through new Bitcoin retirement plans. Additionally, the company mentioned a steep rise in demand for Bitcoin plans. “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 401(k)s. Conventional 401(k) 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,” Pokornicky added.
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