Fidelity Investments Is Giving Retirement Savers a New Way to Invest in Crypto

The plan lets investors hold Bitcoin, Ethereum, and Litecoin directly, making it one of the few traditional financial firms to offer such an option.

Fidelity Investments is providing retirement savers with a new way to invest in cryptocurrency. The firm has launched a crypto IRA that allows investors to directly hold Bitcoin, Ethereum, and Litecoin, making it one of the few mainstream financial firms to offer such an option.

This development comes amid growing interest in tax-friendly crypto investment opportunities, especially among investors seeking long-term, direct access to digital assets. Financial advisors, too, are becoming more open to cryptocurrency. A recent TMX Vetta Fi survey found that 57% of advisors intend to increase their investments in crypto ETFs.

While crypto equity ETFs remain the primary focus for advisors, direct crypto investment options like Fidelity’s new IRA product could provide an alternative for those seeking to hold assets outright.

Those interested must be U.S. citizens of age 18 and older to open an account. Assets will be stored securely in cold wallets managed by Fidelity Digital Assets for long-term safety. Unlike traditional retirement plans, there are no fees for Fidelity’s crypto IRA, and investors can choose to set it up as a Roth IRA, traditional IRA, or rollover IRA.

A spokesperson for Fidelity mentioned that the firm is constantly adapting to meet the evolving needs and interests of its customers. Investor appetite for direct crypto exposure in tax-advantaged accounts has been increasing steadily.

A person familiar with Fidelity’s plans said that more customers are looking for a simple and tax-efficient way to trade and hold crypto in their retirement accounts.

At the same time, Fidelity has been expanding its crypto investment options beyond direct holdings. The firm’s subsidiary, iShares, is also applying for a Solana ETF with the Cboe Exchange, further expanding its footprint in the digital asset space.

This move underscores the growing demand for crypto products among major investors. With growing interest from financial advisors and investors in the metaverse and Web3, it seems like institutions are quickly integrating emerging technologies.output: Fidelity Investments is giving retirement savers a new way to invest in crypto.

The firm has launched a crypto IRA that allows investors to directly hold Bitcoin, Ethereum, and Litecoin. It’s one of the few mainstream financial firms to offer such an option.

This comes amid interest in options to invest in crypto in a tax-friendly manner, especially among investors who want to hold digital assets for the long term and financial advisors who are becoming more open to crypto. A recent TMX Vetta Fi survey found that 57% of advisors intend to increase their investments in crypto ETFs.

While the primary focus for advisors remains on crypto equity ETFs, direct crypto investment options like this new IRA product from Fidelity could provide an alternative for those who want to hold the assets themselves.

Those interested must be U.S. citizens of age 18 and older to open an account. Assets will be stored securely in cold wallets managed by Fidelity Digital Assets for long-term safety. Unlike traditional retirement plans, there are no fees for this crypto IRA and investors can choose to set it up as a Roth IRA, traditional IRA, or rollover IRA.

A spokesperson for Fidelity stated that the firm is committed to offering investment products and solutions to meet the changing needs and interests of its customers, accompanied by education and support.

Investor appetite for direct crypto exposure in tax-advantaged accounts has been growing. A person familiar with Fidelity’s plans said that more customers are looking for a simple and tax-efficient way to trade and hold crypto in their retirement accounts.

At the same time, Fidelity has been expanding its crypto investment options beyond direct holdings. Earlier this month, iShares, the asset-management subsidiary of parent company BlackRock, filed for a Bitcoin ETF with the Securities and Exchange Commission.

Fidelity’s subsidiary, iShares, is also applying for a Solana ETF with the Cboe Exchange, in a move that signals the firm’s intent to expand its footprint in the digital asset space.

This news comes as several institutions are making moves in the crypto space. Earlier this year, seven-time Formula One champion Lewis Hamilton joined the board of River Holdings Group, a Miami-based firm that specializes in digital assets.

Additionally, The Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, has teamed up with crypto startup HashKey to launch a digital currency futures exchange in Hong Kong.

As regular finance delves deeper into the crypto realm and institutions like BlackRock and Cathie Wood's Ark Invest grow more interested in blockchain technology, it’s no surprise that mainstream financial firms are making a push to offer digital assets to the big-ticket investment crowd.