Can You Buy Bitcoin Directly Through Fidelity?
As of 2024, Fidelity Investments does not allow direct purchase of Bitcoin or other cryptocurrencies through its traditional brokerage platform. Unlike Coinbase or Binance, you can’t create a crypto wallet or buy actual BTC tokens directly in your Fidelity account. However, Fidelity offers a powerful alternative: Bitcoin ETFs (Exchange-Traded Funds). These regulated investment vehicles track Bitcoin’s price, allowing you to gain exposure through your existing brokerage account.
How to Invest in Bitcoin via Fidelity ETFs
Follow these steps to gain Bitcoin exposure through Fidelity:
- Open a Fidelity Account: Sign up for a brokerage account at Fidelity.com (takes ~10 minutes).
- Fund Your Account: Transfer money from your bank or existing investment accounts.
- Search for Bitcoin ETFs: Type “FBTC” (Fidelity Wise Origin Bitcoin Fund) or “IBIT” (iShares Bitcoin Trust) in the trade ticket.
- Place Your Order: Choose between market orders (instant execution) or limit orders (set your price).
- Monitor Your Investment: Track performance under “Positions” in your Fidelity dashboard.
Top Bitcoin ETFs Available on Fidelity
- FBTC (Fidelity Wise Origin Bitcoin Fund): Fidelity’s own low-fee ETF (0.25% expense ratio)
- IBIT (iShares Bitcoin Trust): BlackRock’s popular Bitcoin ETF
- BITB (Bitwise Bitcoin ETF): Known for transparency in holdings
- ARKB (ARK 21Shares Bitcoin ETF): Backed by Cathie Wood’s ARK Invest
Why Choose Fidelity for Bitcoin Exposure?
While you’re not buying actual Bitcoin, Fidelity offers unique advantages:
- Regulatory Security: ETFs are SEC-regulated, reducing counterparty risk
- Tax Efficiency: Held in standard brokerage accounts (simplifies tax reporting)
- Integrated Management: View crypto alongside traditional investments
- Institutional-Grade Custody: Fidelity Digital Assets secures underlying BTC
Fidelity Crypto™: The Future of Direct Purchases?
Fidelity Crypto™ (currently waitlisted) may eventually enable direct Bitcoin purchases. This separate platform allows buying/selling crypto in a dedicated account, though it’s not yet integrated with main brokerage accounts. Existing features include:
- Commission-free Bitcoin and Ethereum trading
- Real-time price alerts
- Educational resources
Risks of Bitcoin Investing Through Fidelity
- Volatility: Bitcoin prices can swing 10%+ daily
- Tracking Error: ETF prices may deviate slightly from actual BTC
- Regulatory Changes: SEC policies could impact ETF operations
- No Wallet Control: You don’t hold private keys for underlying Bitcoin
Frequently Asked Questions (FAQ)
Q: Can I transfer Bitcoin to my Fidelity account?
A: No. Fidelity brokerage accounts don’t support cryptocurrency deposits or withdrawals.
Q: What’s the minimum investment for Bitcoin ETFs?
A: Most ETFs have no minimum – you can buy a single share (FBTC ≈ $60 as of 2024).
Q: Are Bitcoin ETFs safer than crypto exchanges?
A: Yes. ETFs eliminate exchange hacks and offer SIPC protection for cash holdings.
Q: Does Fidelity charge ETF trading fees?
A: Commission-free for U.S. online equity trades, including ETFs. Expense ratios still apply.
Q: When will Fidelity allow direct Bitcoin purchases?
A: No official timeline. Monitor Fidelity Crypto™ updates for potential expansion.
Final Tip: For direct Bitcoin ownership, pair Fidelity ETFs with a hardware wallet for small direct purchases from exchanges. This hybrid approach balances security with market exposure.
