Yes, you can buy Bitcoin on Fidelity, but only through specific accounts and with limits
Fidelity lets you buy Bitcoin in a regular brokerage account or an IRA, but not in every account type they offer. You can hold Bitcoin directly — meaning you own the actual cryptocurrency, not a fund that tracks it — through Fidelity Crypto, their dedicated platform. You can also buy Bitcoin funds (like spot Bitcoin ETFs) in most investment accounts. The route you take depends on what account you have and whether you want to own Bitcoin itself or own a fund that moves with Bitcoin's price.
The catch is that Fidelity Crypto requires a separate sign-up from your main Fidelity account, and it has its own fees and rules. If you already have a Fidelity brokerage account, buying a Bitcoin ETF is simpler — you just search for the ticker and buy it like any other investment.
Key Takeaways
- Fidelity Crypto lets you buy and hold actual Bitcoin, but you must set up a separate account and verify your identity again.
- You can buy Bitcoin ETFs (funds that track Bitcoin's price) in a regular Fidelity brokerage account without any extra setup.
- Fidelity Crypto charges a flat fee per transaction plus a percentage of the amount you buy, while Bitcoin ETFs have the same fees as any other stock or fund purchase.
- You cannot buy Bitcoin directly in a Fidelity IRA through Fidelity Crypto, but you can hold Bitcoin ETFs in an IRA.
- Bitcoin prices move constantly, and Fidelity's prices may lag slightly behind real-time market prices.
Buying Bitcoin directly through Fidelity Crypto
Fidelity Crypto is a separate platform where you can buy, sell, and hold actual Bitcoin. To use it, you need an existing Fidelity account (brokerage, IRA, or 401(k)), and you must complete an additional identity verification. Once approved, you can fund your Fidelity Crypto account by transferring money from your linked Fidelity brokerage account.
The process is straightforward: log into Fidelity Crypto, choose Bitcoin, enter the amount you want to buy, and confirm the transaction. Your Bitcoin is stored in a digital wallet that Fidelity manages for you. You can hold it there, transfer it to an external wallet if you choose, or sell it back to Fidelity whenever you want.
Fidelity Crypto charges a flat fee (currently $2 per transaction for most customers) plus a percentage spread on the price. The spread varies but typically ranges from 0.5% to 2% depending on market conditions and the size of your order. These fees are built into the price you see when you buy or sell.
Buying Bitcoin ETFs in a regular Fidelity account
A Bitcoin ETF is a fund that holds Bitcoin and trades like a stock. The main advantage is simplicity: you buy it the same way you buy any other investment in your Fidelity account, with no separate sign-up or identity verification. Fidelity offers several Bitcoin ETFs, including spot Bitcoin ETFs that track the actual price of Bitcoin.
When you buy a Bitcoin ETF, you own shares of the fund, not Bitcoin itself. The fund manager holds the Bitcoin and you benefit from price changes. This matters if you ever want to transfer your Bitcoin to an external wallet — you cannot do that with an ETF. You can only sell the shares back to Fidelity.
Bitcoin ETFs have the same trading fees as any other fund or stock in your Fidelity account. Many Fidelity ETFs have no transaction fee, though the fund itself charges an annual expense ratio (a small yearly percentage). This is usually lower than the combined fees of buying Bitcoin directly through Fidelity Crypto.
Bitcoin in retirement accounts
You can hold Bitcoin ETFs in a Fidelity IRA (Traditional, Roth, or SEP), and they work the same way as in a regular brokerage account. You buy the ETF shares, and the fund holds the Bitcoin. This lets you own Bitcoin inside a tax-advantaged retirement account.
You cannot buy actual Bitcoin directly through Fidelity Crypto inside an IRA. Fidelity's rules do not allow direct cryptocurrency holdings in retirement accounts at this time, only cryptocurrency funds and ETFs. If you want direct Bitcoin ownership in retirement, you would need to use a different provider that specializes in self-directed IRAs with crypto holdings.
Comparing costs: direct Bitcoin vs. ETFs
| Purchase Method | Setup Required | Fees Per Trade | Annual Costs | Can Transfer Out |
|---|---|---|---|---|
| Fidelity Crypto (direct Bitcoin) | Separate account and verification | $2 flat + 0.5% to 2% spread | No annual fee | Yes, to external wallet |
| Bitcoin ETF | None (use existing account) | Usually $0 | 0.2% to 0.4% expense ratio | No, only sell shares |
For small purchases or frequent trading, the ETF route is usually cheaper because you avoid the $2 flat fee and the spread. For larger single purchases, the math depends on the spread at the time you buy. For long-term holding with no plans to transfer Bitcoin elsewhere, an ETF in an IRA is often the simplest and cheapest option.
How to set up Fidelity Crypto if you choose direct Bitcoin
Start by logging into your existing Fidelity account. Look for the Crypto section (usually under Accounts or Investments). Select "Open a Fidelity Crypto account" and complete the additional identity verification. This typically takes a few minutes and involves confirming your personal information.
Once approved, link a funding source. You can transfer money from your Fidelity brokerage account or link a bank account. Transfers from your Fidelity brokerage account are instant; bank transfers take one to three business days. After the money arrives, you can buy Bitcoin immediately.
When you place an order, Fidelity shows you the price and total cost (including the $2 fee and spread) before you confirm. The transaction settles immediately, and your Bitcoin appears in your Fidelity Crypto wallet right away.
Things to know before you buy
Bitcoin prices move constantly, sometimes by hundreds of dollars in a single day. Fidelity's prices update throughout the day but may lag a few seconds behind the actual market price. If you are buying or selling during volatile periods, the price you see when you place an order may be slightly different from the price when it executes.
Fidelity Crypto is insured against theft and hacking, but that insurance does not cover losses from price drops or your own mistakes (like sending Bitcoin to the wrong address). If you transfer Bitcoin to an external wallet, Fidelity is not responsible for what happens to it after it leaves their platform.
Tax reporting is your responsibility. When you buy or sell Bitcoin, you may owe capital gains tax. Fidelity provides tax documents, but you are responsible for reporting the transactions correctly to the IRS.
Frequently Asked Questions
Do I need a minimum amount to buy Bitcoin on Fidelity?
Fidelity Crypto has no stated minimum purchase amount, though the $2 transaction fee makes very small purchases expensive. Bitcoin ETFs can be bought in any amount, starting from a single share. Check the current price of the ETF to see what one share costs.
Can I buy Bitcoin in a Fidelity 401(k)?
No. Fidelity does not offer direct Bitcoin or Bitcoin ETFs in 401(k) plans. Some employer 401(k) plans may offer cryptocurrency options, but that depends on your employer's plan design. Ask your plan administrator whether cryptocurrency investments are available.
What happens if Fidelity goes out of business?
Fidelity is a large, established brokerage firm regulated by the SEC. If Fidelity were to fail, your Bitcoin and other investments would be protected under SIPC (Securities Investor Protection Corporation) up to $500,000 per account. Bitcoin held in Fidelity Crypto is also insured against theft and hacking by a third-party insurer.
Can I sell Bitcoin on Fidelity anytime?
Yes. You can sell Bitcoin or Bitcoin ETF shares during market hours (9:30 a.m. to 4 p.m. Eastern Time on weekdays). Fidelity Crypto also allows sales outside regular market hours, though prices may be less favorable. The sale settles within one to two business days.
Is buying Bitcoin on Fidelity safer than buying on a crypto exchange?
Fidelity is regulated by the SEC and FINRA, which provides oversight and consumer protections. Crypto exchanges vary widely in regulation and security. Fidelity's insurance and regulatory status make it a lower-risk option, but no investment is risk-free, and Bitcoin's price can drop significantly.