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Crypto Investment Manager DAiM Launches Company-Sponsored Bitcoin 401(k) Retirement Plans

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After running a 12-month test, U.S.-based digital asset investment management DAiM has announced the launch of the first employer-sponsored 401(k) plans that use bitcoin as a base currency. 

According to the announcement today, DAiM notes that the new service is compliant with the Retirement Income Security Acts of 1974 (ERISA) and will be fully available from 2021. 

Allocating Up To 10% To Bitcoin

The crypto manager said it would work closely with companies and serve as an advisor and custodian to create a 401(k) plan with a flexible recommended model portfolio and 10% allocation to Bitcoin.

DAiM will also be responsible for selecting, monitoring, and benchmarking the investment offering, as well as a plan fiduciary. 

The bitcoins will be stored in Institutional Cold Storage Custody with Gemini Trust, thus allowing DAiM to easily transfer BTC to employees leaving the participating companies. 

Since 2018, U.S. citizens are allowed to hold cryptocurrencies in their personal retirement accounts, brokerage accounts, and 401(k) rollovers, following the tax imposition by the Internal Revenue Service on Bitcoin. 

However, DAiM’s Chief Operating Officer, Adam Pokornicky, made it clear that it has been impossible to offer Bitcoin inside company-based plans without taking a penalty or quitting one’s job until now. 

He further added that the conventional wealth administration sectors have been slow to warm up to Bitcoin, pointing there are barely any investment advisors offering licensed and regulated access to Bitcoin directly in brokerage and retirement accounts.

Bitcoin Has A Place In Modern Portfolio

Pokornicky ascribes the industry’s hesitation to serious regulatory red tape around crypto abidance, stressing that it took “almost a full year of slow-building” before DAiM’s innovation was endorsed for providing its employer-sponsored facilities.

Pokornicky also highlighted the sharp rise in demand for Bitcoin from retirement investment and said:

“We’ve seen most demand from individuals between the ages of 28-45.”

According to him, the leading cryptocurrency has proved itself as a viable addition in modern portfolios, and “individuals should have an opportunity to ‘Get Off Zero’ and invest directly through their retirement account.”

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Source: https://cryptopotato.com/crypto-investment-manager-daim-launches-company-sponsored-bitcoin-401k-retirement-plans/

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Facebook’s Libra Could Reportedly Arrive in January 2021 in a Scaled-Down Version

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  • Although Facebook failed to launch Libra in mid-2020 as initially planned, the social media giant could do so in early 2021.
  • Finance Times cited three people working on the project claiming that Libra’s long-awaited launch could come in January 2021 but in a scaled-down version.
  • CryptoPotato reported before that Libra already changed its original idea from being a “single global digital currency” to creating a series of various digital coins. 
  • The FT coverage asserted that Libra could see the light of day after receiving approval to operate as a payments service from the Swiss Financial Market Supervisory Authority (FINMA). However, the Libra Association would initially release just a single coin backed one-for-one by the dollar. The other set of currencies would be rolled out later, should the FINMA application is successful.
  • Facebook rattled the financial world last year after announcing plans to launch its own cryptocurrency called Libra. After receiving scrutiny from world watchdogs, the Libra project underwent numerous changes, including executive replacements.
  • Libra suffered more blows when several notable partners left. Those included PayPal, Mastercard, eBay, Vodafone, and more.
  • In an attempt to salvage the project, the Association decided to make further changes by renaming Libra’s wallet provider from Calibra to Novi.

Featured Image Courtesy of AlJazeera

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Source: https://cryptopotato.com/facebooks-libra-could-reportedly-arrive-in-january-2021-in-a-scaled-down-version/

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Bitcoin Worth $500 Million Withdrawn From OKEx as Users Look for Other Alternatives

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Users withdrew a record 29,300 BTC from OKEx after the Malta-based cryptocurrency exchange resumed withdrawals yesterday. This comes after bitcoin (BTC) price kickstarted its epic freefall dropping to levels near $16,500 before bouncing back up again. But what is the reason behind the massive bitcoin exodus out of OKEx?

OKEx Sees Significant BTC Withdrawals And Deposits

As per the latest update from on-chain and market analysis firm Glassnode, OKEx users have withdrawn a record 29,300 bitcoins after the exchange gave the green signal for resuming withdrawals yesterday. These BTC transactions amount to roughly $5 billion (considering the current spot rates).

Glassnode also observed a deposit of 21,600 BTC on OKEx. Withdrawals and deposits together had a depreciating effect on the exchange’s overall bitcoin balance which reduced to around 212,000 BTC.

The potential cause behind the massive exodus of bitcoin holdings could be a result of users leaving OKEx in search of other alternatives. Binance, Huobi, and some third party wallets were at the receiving end of the initial bitcoin transfers from the exchange.

Users Dissatisfied With OKex; Seek Other Alternatives

OKex announced the resumption of withdrawals on November 19. Few folks welcomed the developments, but most of them seemed miffed with the exchange’s recent bitcoin and crypto withdrawal suspension, with a lot of users demanding compensation else they make their move to other platforms.

Large BTC Deposits Point To ‘Centralized Failure’ Risks

As reported by CryptoPotato, OKEx had more than 200,000 BTC stored in their wallets during the ‘withdrawal lockdown.’

Although OKEx CEO Jay Hao assured users that their funds are safe and that there’s no “cause for alarm,” the vastness of the above bitcoin stash is pretty alarming. Especially because it is controlled by one single organization.

What’s more disappointing is that the official who had access to the private keys was ‘out of touch’ with the management. The OKEx personnel wasn’t able to reach out to him. This is not desirable since it poses huge risks to these BTC stashes falling prey to coordinated attacks that target centralized points of failure.

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Source: https://cryptopotato.com/bitcoin-worth-5-billion-withdrawn-from-okex-as-users-look-for-other-alternatives/

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