Fidelity Investments, one of the largest financial services companies in the world, has been increasingly exploring the cryptocurrency space. However, many investors are left wondering: Can I buy crypto directly through Fidelity? Let’s dive into what Fidelity offers in terms of cryptocurrency investments, what alternatives exist, and how the platform is positioning itself in the ever-evolving world of digital assets.
Fidelity and Cryptocurrency: An Overview
Fidelity has been at the forefront of cryptocurrency adoption among traditional financial institutions. Through its subsidiary, Fidelity Digital Assets, the company has been providing cryptocurrency custody and trading services for institutional investors since 2018. However, this service is not directly available to retail investors.
For individual investors, Fidelity has shown a growing interest in making cryptocurrency more accessible, but the options remain somewhat limited compared to dedicated crypto exchanges like Coinbase or Binance.
Can You Buy Crypto Directly on Fidelity?
As of now, Fidelity does not allow retail investors to buy cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH) directly on its platform. Instead, it provides indirect exposure to cryptocurrencies through the following avenues:
- Cryptocurrency-Related Stocks and ETFs
Fidelity offers access to stocks of companies involved in the cryptocurrency and blockchain sectors. For example, you can invest in publicly traded companies like Coinbase, Riot Blockchain, or Marathon Digital Holdings. Additionally, Fidelity provides access to cryptocurrency-focused exchange-traded funds (ETFs) such as:- Fidelity Crypto Industry and Digital Payments ETF (FDIG): This ETF invests in companies that support cryptocurrency and blockchain technologies.
- Other Blockchain ETFs: You can explore third-party blockchain ETFs available on Fidelity’s platform.
- Bitcoin in Retirement Accounts
Fidelity recently made headlines by allowing employers to offer Bitcoin as an investment option in 401(k) retirement plans. This groundbreaking move enables individuals to allocate a portion of their retirement savings to Bitcoin, marking a significant step toward mainstream crypto adoption. However, this option depends on whether your employer has opted into the program.
Fidelity Digital Assets: Institutional Services
While retail investors face limitations, Fidelity Digital Assets caters to institutional clients by offering cryptocurrency custody and execution services. These services include:
- Secure storage of digital assets.
- Trade execution for Bitcoin and Ethereum.
- Research and insights into the cryptocurrency market.
This institutional focus highlights Fidelity’s commitment to building a robust crypto infrastructure for large-scale investors.
Alternatives for Buying Crypto
If you’re a retail investor looking to buy crypto directly, you’ll need to use a dedicated cryptocurrency exchange or app. Popular options include:
- Coinbase: A user-friendly platform for buying, selling, and storing cryptocurrencies.
- Binance: Offers a wide range of cryptocurrencies and trading options.
- Kraken: Known for its security features and advanced trading tools.
- Robinhood: Allows for commission-free crypto trading, though it lacks full wallet functionality.
Once purchased, you can transfer your crypto to a private wallet for added security.
The Future of Crypto at Fidelity
Fidelity’s ongoing efforts to integrate cryptocurrencies into its offerings suggest that the company is positioning itself as a leader in bridging traditional finance and digital assets. While direct crypto purchases are not yet available for retail investors, the introduction of Bitcoin in 401(k) plans and the company’s continued research into blockchain technology indicate that broader access could be on the horizon.
Conclusion
Although you can’t currently buy cryptocurrencies directly through Fidelity’s retail platform, the company provides several indirect ways to gain exposure to the crypto market. Whether through ETFs, cryptocurrency-related stocks, or Bitcoin in retirement accounts, Fidelity is actively exploring how to integrate digital assets into its ecosystem.
For those eager to dive directly into cryptocurrency trading, dedicated exchanges remain the go-to option. However, with Fidelity’s progressive approach, it’s worth keeping an eye on how the platform evolves to meet the growing demand for crypto investments.