Fidelity lets companies offer bitcoin in a 401(k). One financial analyst thinks it?s a ?terrible idea.?

The financial services company Fidelity Investments said it was giving companies the ability to offer employees the option to invest up to 20 percent of their 401(k)s in bitcoin. "There is growing interest from (retirement) plan sponsors for vehicles that enable them to provide their employees access to digital assets in defined contribution plans, and in turn from individuals with an appetite to incorporate cryptocurrencies into their long-term investment strategies," said Dave Gray, head of workplace retirement offerings and platforms at Fidelity Investments.In a follow-up interview, Gray said any company with employees who may be interested in digital currencies like bitcoin as part of the long-term transformation of the financial system should consider the product. The department has cautioned retirement plan managers to be judicious when it comes to cryptocurrencies."At this early stage in the history of cryptocurrencies, the Department has serious concerns about the prudence of a fiduciary’s decision to expose a 401(k) plan’s participants to direct investments in cryptocurrencies, or other products whose value is tied to cryptocurrencies," it said in March, before Fidelity announced it was offering bitcoin.