Fidelity Denies Report That Bitcoins Can Be Used in Its IRAs

by Christopher Freeburn | December 12, 2013 10:10 am

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[1], but Fidelity now denies the claim.

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[4]. 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[5], 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[6].

Source URL: https://investorplace.com/2013/12/fidelity-gives-bitcoins-green-light-iras/

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