Fidelity Launches Crypto Retirement Options with Bitcoin and Two Altcoins

Fidelity Investments has introduced a new lineup of zero-fee retirement plans aimed at giving investors exposure to major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC).

Fidelity Investments has launched a lineup of zero-fee retirement plans that provide exposure to major cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC).

These plans are designed for U.S. residents over the age of 18, specifically in states where Fidelity Digital Assets supports crypto individual retirement arrangements (IRAs).

The investment giant is introducing three distinct IRA options. The first is a Roth IRA, which offers tax-free savings using already taxed income.

The second is a traditional IRA, designed for tax-deferred growth on potential earnings.

The third is a Rollover IRA, which allows users to transfer funds from previous employer-sponsored retirement plans, such as a 401(k) or 403(b), into a crypto IRA.

To open a Crypto IRA with Fidelity, users must also have a corresponding Fidelity brokerage IRA, which serves as the funding account. If the customer does not already have one, Fidelity will set it up concurrently. Once linked, users can transfer money between the brokerage and crypto IRAs to facilitate trading.

The crypto IRA provides access to Bitcoin, Ethereum, and Litecoin, focusing on well-known digital assets with higher market capitalization and liquidity.

There are no maintenance or account fees for setting up and holding a Fidelity Crypto IRA. However, a 1% spread will apply to buy and sell transactions. This spread represents the difference between the internal acquisition cost of the asset and the price provided to the client.

The structure of the Crypto IRA also aligns with traditional Fidelity retirement accounts, enabling users to designate beneficiaries through the linked brokerage IRA platform. Any changes to beneficiaries must be made via the same platform.

This initiative is part of Fidelity Digital Assets’ broader strategy to connect traditional finance with the evolving crypto market, emphasizing security and seamless integration for retirement-oriented investors.

This latest move by Fidelity further expands the options available to investors interested in incorporating crypto into their long-term investment and retirement portfolio strategies.