Does Fidelity Let You Buy Bitcoin Directly?
Yes – but with important nuances. Fidelity offers two primary ways to gain Bitcoin exposure: through their dedicated Fidelity Crypto® service (available in select states) or by purchasing their spot Bitcoin ETF (FBTC) in a brokerage account. While you can’t buy physical Bitcoin directly like on Coinbase, these regulated options provide secure access within Fidelity’s ecosystem.
How to Buy Bitcoin via Fidelity Crypto®
Follow these steps if Fidelity Crypto is available in your state:
- Check Eligibility: Confirm service availability in your state via Fidelity’s website (currently supports 40+ states including CA, TX, NY, FL).
- Enable Crypto Features: Log into your Fidelity account > Navigate to ‘Accounts & Trade’ > Select ‘Crypto’ > Complete identity verification.
- Fund Your Account: Transfer USD from your bank or existing Fidelity account (e.g., brokerage, cash management).
- Place Your Order: Search ‘BTC’ > Enter dollar amount (minimum $1) > Review spread (0.75-1.5% fee included) > Confirm trade.
- Monitor Holdings: View Bitcoin balance alongside traditional investments in your unified Fidelity dashboard.
How to Invest Through Fidelity’s Bitcoin ETF (FBTC)
For investors in restricted states or preferring traditional markets:
- Open/Use Brokerage Account: Ensure you have an active Fidelity brokerage account (e.g., standard brokerage or IRA).
- Fund the Account: Deposit cash via bank transfer or account linkage.
- Trade FBTC: Search ticker ‘FBTC’ > Choose order type (e.g., market/limit) > Specify shares > Execute trade.
- Hold Long-Term: FBTC tracks Bitcoin’s price and can be held indefinitely like stocks (expense ratio: 0.25%).
Key Advantages of Buying Bitcoin via Fidelity
- Integrated Experience: Manage crypto alongside stocks/ETFs in one platform
- Security First: 98% cold storage insurance + SOC 1/2 compliance
- Low Barriers: $1 minimum for crypto, no commissions (fees via spread)
- Tax Reporting: Consolidated 1099 forms simplify filings
Important Limitations to Consider
- ❌ No Withdrawals: Can’t transfer BTC to external wallets (custodial-only)
- ❌ State Restrictions: Crypto service unavailable in HI, LA, NV, VT, WA, WY
- ❌ Limited Assets: Only BTC and ETH supported (no altcoins)
Fidelity Bitcoin FAQ
Q: What’s the minimum investment?
A: $1 for Fidelity Crypto; 1 share of FBTC (~$60 as of July 2024).
Q: Are there transaction fees?
A: No commissions, but Fidelity Crypto includes fees in the spread (0.75-1.5%). FBTC has a 0.25% annual expense ratio.
Q: Can I move my Bitcoin off Fidelity?
A: No – both options are custodial. Fidelity Crypto holds your keys; FBTC is a security representing BTC exposure.
Q: Is Fidelity Crypto available for IRAs?
A: Not currently. Only taxable accounts support crypto. FBTC can be held in IRAs.
Q: How quickly do trades execute?
A: Fidelity Crypto processes orders in real-time during market hours (9:30 AM-4 PM ET).
Q: What security measures exist?
A: Multi-factor authentication, biometric login, and offline cold storage for 98% of digital assets.
Smart Strategies for Fidelity Bitcoin Investors
1. Dollar-Cost Average: Set recurring buys to mitigate volatility
2. Combine Approaches: Use FBTC in IRAs + Crypto in taxable accounts
3. Verify State Access: Check [Fidelity’s Crypto Hub](https://www.fidelity.com/crypto) for updates
4. Rebalance Regularly: Maintain target allocation (e.g., 1-5% of portfolio)
Fidelity bridges traditional finance and crypto with unmatched security and convenience. Whether you choose direct crypto access or ETF exposure, you’re investing through a platform trusted by over 43 million investors. Always research risks – Bitcoin remains volatile – but for compliant, integrated access, Fidelity delivers.
