Cryptocurrency has become a pivotal asset class, and Fidelity Investments—a titan in the U.S. financial sector—has strategically positioned itself as a trusted gateway for investors. From pioneering Bitcoin mining in 2014 to launching retail trading and spot ETFs, Fidelity bridges traditional finance with the crypto revolution. This guide delves into Fidelity’s crypto ecosystem, covering its ETFs, fee structures, account setup, and risks, tailored for both beginners and seasoned traders.
Fidelity’s Crypto Journey: Early Adoption to Mainstream Integration
Fidelity’s crypto roots run deep:
- 2014: Began mining Bitcoin, signaling early blockchain advocacy.
- 2018: Launched Fidelity Digital Assets, offering institutional-grade custody.
- 2021: Introduced Fidelity Crypto, enabling retail trading of Bitcoin, Ethereum, and Litecoin.
With $4 trillion+ in assets under management (2024), Fidelity combines institutional trust with crypto innovation. Its New York-chartered trust company status (NMLS ID 1773897) ensures rigorous regulatory compliance—a rarity in the volatile crypto space.
Fidelity’s Crypto ETFs: Simplified Exposure to Bitcoin and Ethereum
Fidelity offers two spot ETPs (exchange-traded products) for seamless crypto investing:
1. Fidelity Wise Origin Bitcoin Fund (FBTC)
- Type: Spot ETP tracking Bitcoin’s price.
- Expense Ratio: 0.25% (vs. Grayscale’s 1.5%).
Key Features:
- Trades on Cboe BZX Exchange during market hours.
- Holds actual Bitcoin, minimizing tracking error.
- Eligible for IRAs and brokerage accounts.
2. Fidelity Ethereum Fund (FETH)
- Type: Spot ETP for Ether (Ethereum’s native token).
- Expense Ratio: 0.25%.
- Potential Upside: Future staking rewards (pending SEC approval).
Thematic Crypto ETFs (Indirect Exposure)
| ETF | Ticker | Focus | Expense Ratio |
|--------------|--------|--------------------------------|---------------|
| FDIG | FDIG | Crypto industry & digital payments | 0.59% |
| FMET | FMET | Metaverse & blockchain tech | 0.59% |
👉 Compare Fidelity’s crypto ETFs
Fee Structure: Transparency with Moderate Costs
Trading Fees
- Spread: Up to 1% on buys/sells (e.g., $10 on a $1,000 trade).
- No commissions: But spreads are higher than Kraken (0.5%).
ETF/ETP Costs
- FBTC/FETH: 0.25% annual fee.
- FDIG/FMET: 0.59% annual fee.
Fee Comparison Table
| Platform | Crypto Trading Fee | ETF Expense Ratio |
|-------------|--------------------|-------------------|
| Fidelity | 1% spread | 0.25% (FBTC/FETH) |
| Coinbase | 1%-4% | N/A |
| BlackRock | N/A | 0.25% (IBIT) |
Setting Up a Fidelity Crypto Account
Steps to Get Started
- Open a Fidelity brokerage account (if needed).
- Enable crypto trading via the app/web.
- Fund your account via linked brokerage cash.
- Trade 24/7—BTC, ETH, or LTC.
Limitations
- No external wallet transfers: Assets stay on Fidelity’s platform.
- Taxable events: Each trade triggers capital gains tax.
Risks & Considerations
- Volatility: Crypto prices can swing wildly.
- Regulatory uncertainty: ETPs lack traditional ETF protections.
- Tax complexity: Manual tracking required for crypto trades.
FAQ Section
Q: Can I trade crypto in my Fidelity IRA?
A: Only via FBTC/FETH—direct crypto trading isn’t allowed in IRAs.
Q: How does Fidelity secure my crypto?
A: Cold storage, multi-signature tech, and NYDFS oversight.
Q: Are Fidelity’s fees competitive?
A: Mid-range—cheaper than Coinbase but pricier than Kraken.
Q: Can I stake Ethereum with FETH?
A: Not yet, but Fidelity is exploring this feature.
Final Thoughts
Fidelity’s crypto offerings blend accessibility with institutional security, ideal for U.S. investors seeking regulated exposure. While fees aren’t the lowest, the platform’s integration with traditional accounts and ETFs like FBTC/FETH provides a balanced entry point.
For deeper insights, check out Fidelity’s Crypto Learning Center.
### Key Features:
- **SEO Optimization**: Natural keyword integration (e.g., "Bitcoin ETF," "crypto fees").