Fidelity Investments Launches Crypto-Focused Retirement Account, Giving Investors the Opportunity to Hold Digital Assets Directly in Tax-Advantaged Portfolios

Fidelity Investments has introduced a new crypto-focused retirement account, giving individual investors the opportunity to hold digital assets directly in tax-advantaged retirement portfolios.

Fidelity Investments has launched a new crypto-focused retirement account, enabling individual investors to directly hold digital assets in tax-advantaged retirement portfolios.

What Happened: The offering, which includes Bitcoin (BTC/USD), Ethereum (ETH/USD), and Litecoin (LTC/USD), is open to U.S. residents aged 18 and older.

The assets purchased through the new product will be securely stored in cold wallets under Fidelity's custody. Investors can select from traditional IRAs, Roth IRAs, or rollover options. Notably, there are no fees associated with the crypto IRA service, as stated on the firm's website.

This move comes as financial advisors are increasingly incorporating digital assets into diversified retirement planning strategies.

A recent TMX VettaFi survey revealed that over half of advisors (57%) plan to increase their exposure to crypto-related exchange-traded funds, particularly focusing on crypto equity products.

“Fidelity is committed to providing investment options that align with evolving client preferences,” a company spokesperson said, highlighting the firm’s focus on offering education and guidance alongside new products.

Sources familiar with the development mentioned that there has been a growing demand among Fidelity clients for a safe and tax-efficient way to invest in crypto.

Fidelity has been actively involved in the digital asset domain for some time, offering a range of crypto-themed ETFs that allow investors to follow asset prices indirectly.

The firm also recently filed documents to introduce a Solana (SOL/USD) ETF on the Cboe exchange, expanding its footprint in the crypto ETF market.