- In 2014, they began mining bitcoin.
- In 2018, they launched bitcoin trading for institutional investors and hedge funds.
- In 2020, they released their bitcoin ETF.
- In May 2022, they became the first retirement plan provider to add Bitcoin as a 401(k) plan investment option.
Now, Fidelity is unveiling crypto trading for retail customers.
In this article, we’ll explain everything you need to know about trading crypto on Fidelity.
Trading crypto is challenging for many people. Decentralized on-chain trading platforms like Uniswap are exceedingly difficult for the average trader to use, while exchanges like Coinbase and Kraken, while much more manageable than decentralized platforms, are still tricky to onboard onto.
Fidelity solves this by allowing people to trade crypto directly within their already-established Fidelity account and mobile app.
To trade crypto on Fidelity, you must first get on the early-access list. This is the waitlist to access Fidelity Crypto, and right now, it is only available to U.S. residents of the following states:
- South Dakota
- New Hampshire
- New Jersey
- New York
- North Dakota
- South Carolina
Unfortunately, the timetable for new states and locations to be added to Fidelity Crypto is uncertain.
You’ll know you are off the waitlist when you receive an email from Fidelity inviting you to Fidelity Crypto. Once the program finally launches, you’ll be able to access the Fidelity Crypto section of your Fidelity mobile app and begin trading bitcoin and ethereum commission-free directly inside the app with as little as $1.
How can I gain exposure to crypto through Fidelity without access to Fidelity Crypto?
There are multiple ways to gain exposure to crypto through Fidelity that do not require access to Fidelity Crypto.
- The Fidelity Crypto Industry and Digital Payments ETF (FDIG) offers exposure to companies involved in blockchain technology, cryptocurrency, and digital payment processing.
- The Fidelity Metaverse ETF (FMET) offers exposure to companies virtually augmenting the future of the internet through digital content, infrastructure, wearable technology, and other Metaverse-related activities.
- If you live in Canada, the Fidelity Advantage Bitcoin ETF offers exposure to bitcoin, the world’s largest crypto asset.
Can you buy crypto in a Fidelity 401(k) or IRA?
Yes, Fidelity offers customers the opportunity to add crypto to their 401(k) or IRA through a Digital Assets Account, which allows employees to add bitcoin to their core 401(k) investment lineup.
Does Fidelity have a crypto wallet?
A crypto wallet usually means a place where the wallet owner stores their cryptocurrencies in a self-custody manner. This means they alone control the crypto assets in the wallet, not a third party such as a bank or an exchange. In this sense, Fidelity does not have a crypto wallet, as Fidelity stores your crypto for you. However, considering that Fidelity is an asset manager with years of experience, this is a great option to keep your crypto assets safe.
What crypto assets are available to trade on Fidelity?
At this time, only bitcoin and ethereum are available to trade on Fidelity, although additional cryptocurrencies may be added in the future.
What are the fees on Fidelity Crypto?
Trades on Fidelity Crypto are commission-free. However, Fidelity Crypto does factor in a spread of 1% into each trade. A spread is the difference between the price the trade is executed at and the price at which Fidelity fills your order. So, theoretically, you could lose up to 1% on each trade.
Does Fidelity have a crypto exchange?
Yes, Fidelity operates a separate crypto exchange with Citadel, Charles Schwab, and Virtu, known as EDX Markets. EDX offers trading for bitcoin, ethereum, bitcoin cash, and litecoin, but is currently membership-only. Applications can be found here.
Fidelity Crypto is an attractive option for traders looking to safely gain access to crypto assets without the technical hassle of using a traditional crypto exchange.
Between Fidelity Crypto, EDX Markets, the 401(k) Digital Asset Account, the FDIG and FMET, and the Canadian Bitcoin ETF, Fidelity is building a crypto empire worth watching.