Fidelity Launches Zero-Fee Crypto Retirement Accounts

TLDR:

Table of Contents

Fidelity has launched crypto IRAs offering exposure to Bitcoin, Ethereum, and Litecoin
The accounts have no maintenance fees but include a 1% trading spread
Three IRA types are available: Roth IRA, Traditional IRA, and Rollover IRA
Customers must have a linked Fidelity brokerage IRA as a funding account
Fidelity continues to expand its crypto offerings following its successful ETF launches

Fidelity Investments, one of America’s largest financial services providers, has launched a new offering allowing investors to include cryptocurrencies in their retirement portfolios. The company announced zero-fee retirement plans that provide exposure to three major cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC).

Available to US citizens over 18 in states where Fidelity Digital Assets operates, the new crypto individual retirement arrangements (IRAs) come with no maintenance fees. Customers will only pay a 1% spread on buy and sell orders, which represents the difference between the price received and the price at which Fidelity sources the asset.

The financial giant is offering three different IRA plans to suit various investor needs. The first is a tax-free Roth IRA, which allows investors to save for retirement with already taxed money. The second is a traditional IRA, which allows for tax-deferred potential earnings growth.

The third option is a Rollover IRA. This enables investors to transfer funds from a former employer’s plan to an IRA, such as a 401(k), 403(b), or another IRA.

Account Requirements and Features

To open a Fidelity Crypto IRA, investors must also hold a Fidelity brokerage IRA with the same registration type. This linked account acts as a funding account for the crypto IRA. Users can transfer funds from this brokerage IRA into the crypto IRA to execute trades.

If an individual does not already have a qualifying Fidelity brokerage IRA, the firm will open one alongside the crypto IRA setup. This requirement ensures proper funding and management of the crypto investments within the retirement framework.

The offering allows users to retain familiar features of traditional Fidelity retirement accounts. This includes beneficiary management, with designated beneficiaries for the Crypto IRA mirroring those established on the linked brokerage IRA.

Customers can make changes to beneficiaries through the brokerage IRA platform. This streamlines the management process and ensures consistency across retirement accounts.

Asset Selection and Fidelity’s Crypto Journey

Fidelity’s decision to include only Bitcoin, Ethereum, and Litecoin reflects a focus on established assets. These cryptocurrencies have higher market capitalization and liquidity compared to newer digital assets.

Bitcoin currently holds the top position with a market cap of approximately $1.7 trillion. Ethereum follows as the second-largest cryptocurrency with a market cap of $228 billion. Litecoin ranks 23rd with a market cap of $6.4 billion.

This latest offering builds on Fidelity’s growing involvement in the cryptocurrency space. In 2022, Fidelity backed EDX Markets, a crypto exchange for institutional investors, alongside Wall Street giants Charles Schwab, Citadel Securities, and Paradigm.

That same year, Fidelity revealed plans to allow sponsors to add a Digital Assets Account to their plan lineup. This established an early framework for cryptocurrency inclusion in retirement planning.

Expanding Crypto Presence

Fidelity is among the top asset managers that received SEC approval last year to launch Bitcoin and Ethereum exchange-traded funds (ETFs). The Fidelity Wise Origin Bitcoin Fund (FBTC) has generated nearly $11.4 billion in net inflows, ranking second among the 11 funds currently trading.

The Fidelity Ethereum Fund (FETH), which debuted last July, has received about $1.4 billion in net inflows. This also ranks second among the nine funds currently trading, according to data from UK asset manager Farside Investors.

Beyond retirement accounts and ETFs, Fidelity Digital Assets is exploring other crypto initiatives. Sources indicate the firm is actively testing a stablecoin it has developed, though there are no immediate plans to bring the token to market.

The firm is also exploring the tokenized U.S. Treasury market, showing a broader interest in blockchain applications beyond pure cryptocurrency investments. This multi-faceted approach demonstrates Fidelity’s commitment to expanding its digital asset offerings.

As of April 3, 2025, the new crypto IRAs are officially available to eligible customers, allowing retirement-focused investors another avenue to gain exposure to digital assets in a tax-advantaged wrapper.

Stay Ahead of the Market with Benzinga Pro!

Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders: