Fidelity Investments has introduced no-fee individual retirement accounts allowing U.S. adults to invest in cryptocurrencies like Bitcoin, Ethereum, and Litecoin.
Launch of Crypto IRAs
Fidelity, a financial giant with over $6 trillion in assets under management, has launched new individual retirement accounts that allow U.S. adults to invest in cryptocurrency tax-advantaged. The portfolio includes cryptocurrencies like Bitcoin, Ethereum, and Litecoin. The new IRAs provide access to tax-free (Roth) and tax-deferred (traditional and rollover) accounts. While there are no account maintenance or custody fees, Fidelity applies a 1% spread on the execution price of crypto transactions.
Asset Storage and Management
Fidelity will store most assets in cold wallets to enhance security. Clients can manage their investments through Fidelity’s existing platform, integrating crypto assets alongside traditional ones. However, the service is subject to state availability, meaning some U.S. residents may not have immediate access.
Expansion of Fidelity's Crypto Offerings
Fidelity has been expanding its crypto offerings over the past year. The firm already provides Bitcoin and Ethereum exchange-traded funds and recently filed to list a Solana ETF on the Cboe exchange. Additionally, reports suggest Fidelity is exploring the launch of its own stablecoin to facilitate crypto transactions. The firm plans to integrate cryptocurrency into its services, reflecting a broader trend among traditional financial institutions.
Fidelity's initiatives to integrate cryptocurrency into retirement plans reflect growing demand for digital assets and may drive further adoption of cryptocurrencies in long-term investment strategies.
