Fidelity Denies Report That Bitcoins Can Be Used in Its IRAs

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

Fidelity Denies Report That Bitcoins Can Be Used in Its IRAs

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.

Bitcoins 300x168 Fidelity Denies Report That Bitcoins Can Be Used in Its IRAs[2]
Source: Flickr[3]

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].

Endnotes:
  1. from a leading mutual fund manager: http://blogs.marketwatch.com/thetell/2013/12/11/fidelity-now-allows-clients-to-put-bitcoins-in-iras/
  2. [Image]: http://investorplace.com/wp-content/uploads/2013/11/Bitcoins.jpg
  3. Flickr: http://www.flickr.com/photos/94480396@N03/9527545619/in/photolist-fvVanV-c7TeVY-e9SmUj-e9LG7B-e9LGa4-e9SmRY-gGPW7Z-gGHPHM-gGGQdP-gGQRbT-gGQT8b-gGPuRZ-gGGMyR-gGKKiy-gGKsRe-gGQCfz-gGHfXQ-gGKoCd-gGQPhA-gGQDZA-gGH99t-gGPa8F-gGQSLZ-gGKzwE-gGQnoQ-gGPF17-gGQPTn-gGLhKP-gGGKoY-gGQ2SN-gGQtjt-gGQF5G-gGQzK3-gGPnUw-gGHFex-gGRdyn-gGRmkp-gGQVp2-gGQLQD-gGKkDN-gGKCVU-gGQL7s-gGKQah-gGRhjt-gGQy8N-gGR1Rz-gGPGh3-gGKSvt-gGNZGf-gGQ8T2-gGQUSJ
  4. amassed holdings of $65 million in the digital currency: http://www.reuters.com/article/2013/12/11/us-etf-bitcoin-secondmarket-idUSBRE9BA15520131211
  5. seen its value soar in recent months: http://investorplace.com/2013/11/bitcoin-keeps-soaring-briefly-tops-900/#.UqnRHpG1Kf0
  6. and forbade Chinese banks to trade in bit coins: http://investorplace.com/2013/12/bitcoin-sells-china-bans-banks-trading/

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