Fidelity Investments launched its Crypto IRA in April 2025, allowing direct ownership of Bitcoin, Ethereum, and other cryptocurrencies inside Roth, traditional, or rollover individual retirement accounts. The product expansion follows a decade of institutional positioning that began with Bitcoin mining in 2014 and the launch of Fidelity Digital Assets in 2018. Tax-advantaged crypto investing has moved from a niche concept to a live product at one of the world's largest financial institutions, with Fidelity now offering three distinct pathways for holding digital assets inside retirement accounts, each with different risk profiles, fee structures, and tax implications.
Fidelity Crypto IRA Enables Direct Token Ownership
The Fidelity Crypto IRA allows investors to buy, sell, and hold actual cryptocurrency tokens inside a tax-advantaged retirement account. Jim Armstrong of Fidelity stated that the only investments permitted inside a Fidelity Crypto IRA are actual spot cryptocurrency coins and tokens during an April 2026 Covering Crypto livestream. No ETFs, ETPs, stocks, or other securities can be held in the crypto-only IRA.
Opening a Crypto IRA requires linking it to a Fidelity brokerage IRA with the same registration type (Roth, traditional, or rollover). If the investor does not have an existing brokerage IRA, Fidelity opens one simultaneously, according to its Crypto IRA page.
Fidelity charges no fees for account opening, maintenance, or crypto custody. Fidelity Digital Assets charges a 1% trading fee on all buy and sell transactions. Fidelity introduced Fidelity Digital Dollar (FIDD), a stablecoin pegged 1:1 to the U.S. dollar, available inside Crypto accounts.
The Crypto IRA follows the same tax rules as brokerage IRAs. Trades within the account do not trigger taxable events. In a Roth IRA, qualified withdrawals are tax-free. In a traditional IRA, distributions are taxed as ordinary income. Fidelity's crypto IRA guide noted that holding crypto in a Roth IRA offers potential growth and allows qualified withdrawals to be taken tax-free.
Spot Crypto ETPs and Industry ETFs Available in Brokerage IRAs
Investors who prefer not to hold tokens directly can access crypto through Fidelity's brokerage IRA. Fidelity's crypto funds page lists FBTC (spot Bitcoin ETP), FETH (spot Ethereum ETP), and FSOL (spot Solana ETP) as available products. FBTC holds 100% Bitcoin and tracks its price via the Fidelity Bitcoin Reference Rate. FETH provides Ethereum exposure.
FSOL, Fidelity's Solana ETP, includes staking. Fidelity waived the staking fee on the first $1 billion through May 2026, after which a 15% fee applies. Staking introduces a yield dimension that Bitcoin and Ethereum ETPs lack.
Crypto-industry thematic ETFs offer a third pathway. These funds provide diversified exposure to publicly traded companies operating in the digital asset sector without directly holding any cryptocurrency.
Steve, a Fidelity representative, stated that a key advantage of brokerage IRA access is familiarity: investors can buy crypto ETPs through the same interface they use for stocks and bonds during a June 2026 livestream.
Spot Crypto ETPs Not Available as Standard 401(k) Options
Spot crypto ETPs are not currently available as designated investment options within 401(k) plans, according to Fidelity's crypto funds page. If a 401(k) plan already offers Self-Directed Brokerage and permits ETPs within its brokerage window, FBTC and other spot crypto products may be accessible depending on employer plan design.
Fidelity offers a Digital Assets Account (DAA) for select 401(k) plans, which provides indirect exposure to Bitcoin through a diversified digital asset portfolio. The DAA does not involve direct Bitcoin ownership and requires employer approval.
The gap between IRA and 401(k) access reflects a broader regulatory pattern. Employers offering 401(k) plans face fiduciary liability if designated crypto options result in substantial losses for participants. Until the Department of Labor issues definitive guidance, workers seeking tax-advantaged crypto exposure often must use IRAs, which have lower contribution limits.
Crypto Holdings in IRAs Carry No Government Insurance
Crypto in retirement accounts is not insured by the FDIC, SIPC, or any government agency. Fidelity Digital Assets operates as a national trust bank. The IRS treats crypto in IRAs the same as other IRA assets.
Future regulatory changes could alter the tax treatment of digital assets. The GENIUS Act could indirectly affect stablecoin holdings, such as Fidelity Digital Dollar.
FAQ
Can I hold Bitcoin in a Fidelity IRA?
Yes, Fidelity's Crypto IRA allows direct ownership of Bitcoin and other supported cryptocurrencies inside a Roth, traditional, or rollover individual retirement account.
What fees does Fidelity charge for crypto IRAs?
Fidelity charges no account opening, maintenance, or custody fees for its Crypto IRA, but applies a 1% trading fee on all cryptocurrency buy and sell transactions.
Can I buy crypto in my Fidelity 401(k)?
Direct crypto purchases are not available in standard Fidelity 401(k) plans, though Self-Directed Brokerage windows may permit access to spot crypto ETPs depending on employer rules.
