Fidelity, a leading financial company, has introduced new retirement accounts that allow investment in cryptocurrency nearly fee-free.
Fidelity's New Crypto IRAs
Fidelity has introduced three new retirement accounts, including a traditional IRA and two Roth IRAs, offering the ability to buy and sell Bitcoin, Ether, and Litecoin. While there are no fees to open or maintain the accounts, a 1% spread is charged on the execution of crypto buy and sell transactions. The crypto IRA services are offered by Fidelity Digital Assets, a subsidiary of Fidelity traditionally working with institutional investors.
Current Alternatives and Impact
While the direct purchase of cryptocurrencies in an IRA has never been strictly prohibited, few providers have allowed such purchases. Fidelity’s new offerings might signal a shift in this area. Since 2024, for example, ETFs for BTC and ETH have existed, providing investors a way to access crypto markets through their retirement accounts.
Future Prospects for Investors
The move to allow more Americans to invest crypto into retirement accounts is gaining momentum. On April 1, Alabama Senator Tommy Tuberville introduced a bill allowing Americans to add cryptocurrency to their 401(k)s. This process may be part of a trend to lessen regulatory constraints in this domain.
The expansion of crypto investment opportunities for retirement accounts by Fidelity may alter the investment landscape, offering additional avenues for diversification.
