# How to Buy Bitcoin via Fidelity: Your Complete 2024 Guide
With Bitcoin’s growing mainstream adoption, investors are increasingly exploring ways to add it to their portfolios through trusted platforms like Fidelity. While **Fidelity doesn’t allow direct Bitcoin purchases**, it offers seamless access to **Bitcoin ETFs (exchange-traded funds)** – regulated financial products that track Bitcoin’s price. This comprehensive guide walks you through exactly how to buy Bitcoin exposure via Fidelity, compares it to alternatives, and answers critical FAQs.
## Understanding Fidelity’s Bitcoin Investment Options
Fidelity, a leader in traditional finance, has embraced cryptocurrency through Bitcoin ETFs rather than direct crypto trading. Here’s what you need to know:
– **No Direct Bitcoin Purchases**: You cannot buy, sell, or store actual Bitcoin (BTC) in a Fidelity brokerage account.
– **Bitcoin ETF Access**: Fidelity offers multiple Bitcoin ETFs, including its own **Fidelity Wise Origin Bitcoin Fund (FBTC)**, which holds actual Bitcoin and mirrors its market performance.
– **How ETFs Work**: These funds trade like stocks (ticker: FBTC, IBIT, BITB), allowing you to gain Bitcoin exposure without managing private keys or crypto wallets.
– **Account Compatibility**: Available in most Fidelity accounts: brokerage, IRAs (Traditional, Roth), and 401(k)s if your plan allows ETF investments.
## Step-by-Step: How to Buy Bitcoin ETFs on Fidelity
Follow these steps to invest in Bitcoin ETFs through your Fidelity account:
1. **Open or Log In to Your Fidelity Account**
– Existing users: Sign in at Fidelity.com or the mobile app.
– New users: Click “Open an Account” and complete registration (requires SSN, ID, and funding details).
2. **Fund Your Account**
– Transfer cash from a linked bank account (1-3 business days).
– Deposit via wire transfer for same-day availability.
– Minimum: No set minimum, but ETF shares trade at market price (~$40-$70 per share as of 2024).
3. **Search for Bitcoin ETFs**
– In the trade menu, search by ticker symbol:
– Fidelity Wise Origin Bitcoin Fund: **FBTC**
– iShares Bitcoin Trust: **IBIT**
– Bitwise Bitcoin ETF: **BITB**
4. **Place Your Trade**
– Select “Trade” and enter the ETF ticker (e.g., FBTC).
– Choose order type:
– *Market Order*: Buy immediately at current price.
– *Limit Order*: Set a maximum price to control cost.
– Enter share quantity and review fees.
– Confirm and execute the trade.
5. **Monitor Your Investment**
– Track performance under “Positions” in your account.
– Set price alerts via Fidelity’s research tools.
## Pros and Cons: Bitcoin ETFs vs. Direct Bitcoin Ownership
### Advantages of Bitcoin ETFs on Fidelity
– **Regulatory Safety**: ETFs are SEC-regulated, reducing fraud risk.
– **Tax Efficiency**: Easier tax reporting (Form 1099) vs. tracking crypto transactions.
– **Convenience**: Manage alongside stocks in existing accounts; no wallets or keys.
– **Retirement-Friendly**: Hold in IRAs for potential tax benefits.
### Disadvantages and Limitations
– **No True Ownership**: You don’t hold actual Bitcoin, limiting utility (e.g., can’t spend BTC).
– **Fees**: Annual expense ratios (0.25% for FBTC) vs. minimal direct purchase fees.
– **Market Hours**: ETFs trade 9:30 AM–4 PM ET, unlike 24/7 crypto markets.
– **Limited Selection**: Only Bitcoin ETFs; no altcoins like Ethereum.
## Top Alternatives to Fidelity for Bitcoin Exposure
If direct Bitcoin ownership suits you better, consider these platforms:
1. **Coinbase**: User-friendly app; ideal for beginners (fees: 0.5%–1% per trade).
2. **Kraken**: Low fees (0.16%–0.26%) and robust security features.
3. **Robinhood**: Commission-free crypto trades; integrates with stocks.
4. **Swan Bitcoin**: Automated recurring purchases; focused solely on Bitcoin.
## Fidelity Bitcoin ETF FAQ
### Can I buy actual Bitcoin on Fidelity?
No. Fidelity only offers Bitcoin ETFs that track Bitcoin’s price – not direct cryptocurrency purchases.
### What are the fees for buying Bitcoin ETFs?
Expect:
– Trading commissions: $0 for most ETFs on Fidelity.
– Expense ratios: 0.20%–0.30% annually (e.g., FBTC charges 0.25%).
### Is investing in Bitcoin ETFs safe?
While ETFs eliminate wallet/private key risks, Bitcoin’s price remains volatile. ETFs carry market risk but benefit from SEC oversight and institutional custody.
### Can I hold Bitcoin ETFs in my Fidelity IRA?
Yes! FBTC and other spot Bitcoin ETFs are available in Traditional, Roth, and Rollover IRAs. Confirm eligibility with your plan administrator for 401(k)s.
### How do Bitcoin ETFs differ from Bitcoin futures ETFs?
Spot Bitcoin ETFs (like FBTC) hold actual Bitcoin. Futures ETFs use derivatives contracts, which may have higher fees and tracking errors.
### When will Fidelity allow direct Bitcoin trading?
Fidelity hasn’t announced plans for direct crypto trading. Their focus remains on ETFs and institutional services like custody.
## Final Tips for Investing Responsibly
– **Start Small**: Allocate only what you can afford to lose (e.g., 1–5% of your portfolio).
– **Diversify**: Balance Bitcoin exposure with stocks, bonds, and cash.
– **Research**: Understand Bitcoin’s volatility and long-term use cases.
– **Consult Advisors**: Discuss tax implications with a financial professional.
By leveraging Fidelity’s Bitcoin ETFs, you tap into crypto’s potential through a trusted, regulated framework – no crypto wallet required. For hands-off investors prioritizing security and simplicity, this approach offers a compelling gateway to the digital asset revolution.
