Fidelity, a financial services firm managing $5.9 trillion in assets, has launched new retirement accounts that will enable Americans to invest in cryptocurrencies with minimal fees.
The offerings include three accounts: a tax-deferred traditional IRA and two Roth IRAs (one of which is a rollover), which allow transactions involving Bitcoin (BTC), Ether (ETH), and Litecoin (LTC). While there are no fees for opening or maintaining these accounts, a 1% spread is applied to the execution price during crypto buy and sell transactions.
The crypto IRAs are provided through Fidelity Digital Assets, a division of Fidelity that has historically catered to institutional investors for cryptocurrency transactions.
Expanding its client base may indicate a shifting landscape for cryptocurrency in the United States, where strategic Bitcoin reserves are gaining traction and multiple firms, including stablecoin creator Circle, have initiated initial public offering processes.
Fidelity emphasizes that it prioritizes security by storing the majority of its digital assets in cold storage, utilizing wallets that are not connected to the internet.
## BTC and ETH exposure now available in retirement accounts
Although direct cryptocurrency purchases in an IRA have never been outright banned, few IRA providers have facilitated such transactions. As a result, Fidelity’s recent offerings could point to a notable shift in this environment.
For holders of BTC and ETH, alternatives have been available since 2024, such as exchange-traded funds (ETFs) linked to these cryptocurrencies. With the introduction of such ETFs, American investors have been able to gain exposure to crypto markets within their retirement accounts, depending on the brokerage used. Additionally, the popularity of Bitcoin IRAs—self-directed accounts providing tax benefits—has been on the rise.
Certain companies specialize in digital asset-specific IRAs, such as BitIRA, which allows individuals to include altcoins like LTC in their retirement portfolios.
There appears to be a growing trend allowing more Americans to incorporate cryptocurrencies into their retirement accounts. Recently, Alabama Senator Tommy Tuberville reintroduced a bill aimed at enabling cryptocurrency investments in 401(k) plans, proposing to relax regulations set by the Department of Labor.