Fidelity Denies Report That Bitcoins Can Be Used in Its IRAs

However, Fidelity calls report 'inaccurate'

   

EDITOR’S NOTE: This has been updated to reflect Fidelity’s remarks denying claims about Bitcoin use in its IRAs.

Online currency Bitcoin supposedly was getting a new vote of confidence from a leading mutual fund manager, but Fidelity now denies the claim.

Bitcoins 300x168 Fidelity Denies Report That Bitcoins Can Be Used in Its IRAs
Source: Flickr

It was reported earlier today that people who hold self-directed IRAs through Fidelity would be able to invest in the Bitcoin Investment Trust (BIT). An open-ended trust solely invested in the digital currency, BIT was launched by online marketplace SecondMarket in September.

However, Fidelity denied the claims made in the MarketWatch report, tweeting:

“Claims in @MarketWatch’s article are inaccurate. Bitcoin investing is not currently available through our retail platform, including IRAs.”

SecondMarket has partnered with other self-directed IRA providers, including Equity Institutional, PENSCO and Entrust, to allow IRA investments in Bitcoins through BIT.

Since its launch, BIT has amassed holdings of $65 million in the digital currency. According to SecondMarket CEO Barry Silbert, the trust as attracted 90 investors, including hedge funds and investment firms, Reuters notes.

BIT was established with $2 million in seed financing from SecondMarket. The trust purchases Bitcoins from a variety of online vendors.

Bitcoin has seen its value soar in recent months, especially after U.S. authorities signaled that they would not attempt to regulate the digital currency. However, the currency suffered a setback this month when China’s central bank determined that Bitcoin did not have the same legal status as other recognized currencies and forbade Chinese banks to trade in bit coins.


Article printed from InvestorPlace Media, http://investorplace.com/2013/12/fidelity-gives-bitcoins-green-light-iras/.

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