How to Buy Bitcoin via Fidelity: Your Complete 2024 Guide

Introduction: Bitcoin Investing Through a Trusted Platform

As Bitcoin continues to reshape the financial landscape, investors increasingly seek secure avenues to gain exposure. While Fidelity Investments doesn’t support direct Bitcoin purchases, it offers a regulated pathway through Bitcoin ETFs. This comprehensive guide explains how to invest in Bitcoin via Fidelity’s platform, detailing every step while clarifying what’s possible—and what isn’t—with this traditional brokerage giant.

Understanding Fidelity’s Bitcoin Offering: ETFs Explained

Fidelity enables Bitcoin investment exclusively through exchange-traded funds (ETFs), not direct cryptocurrency ownership. Their flagship product is the Fidelity Wise Origin Bitcoin Fund (FBTC), a spot Bitcoin ETF holding actual Bitcoin. Key features include:

• Indirect Exposure: You own shares tracking Bitcoin’s price, not Bitcoin itself
• Regulatory Oversight: ETFs operate under SEC guidelines for enhanced security
• Tax-Advantaged Options: Hold FBTC in IRAs or 401(k)s for potential tax benefits
• 0.25% Expense Ratio: Competitive fee structure versus industry averages

Step-by-Step: How to Buy Bitcoin ETFs on Fidelity

1. Open a Fidelity Account

   Visit Fidelity.com, click “Open an Account,” and complete the online application. Choose between brokerage, IRA, or 401(k) accounts based on your goals.

2. Fund Your Account

   Transfer money via bank wire, ACH transfer, or check deposit. New accounts typically take 1-3 business days to settle funds.

3. Research Bitcoin ETFs

   In your portfolio dashboard, search “FBTC” or explore alternatives like:

   • iShares Bitcoin Trust (IBIT)
   • ARK 21Shares Bitcoin ETF (ARKB)
   • Bitwise Bitcoin ETF (BITB)
4. Place Your Trade

   Navigate to the trade ticket, enter “FBTC,” select shares or dollar amount, and choose order type (Market for immediate execution, Limit for price control).

5. Monitor and Manage

   Track performance in your portfolio view. Set price alerts and consider dollar-cost averaging for long-term positions.

Pros and Cons of Fidelity’s Bitcoin ETF Approach

Advantages	Limitations
✓ No trading commissions	✗ Can’t transfer Bitcoin to private wallets
✓ Integrated with retirement accounts	✗ No direct ownership of Bitcoin
✓ SEC-regulated security	✗ Exposure limited to price movement
✓ Simplified tax reporting	✗ Management fees apply

Alternatives for Direct Bitcoin Purchase

If you seek actual Bitcoin ownership, consider these platforms:

• Coinbase: User-friendly interface with staking options
• Kraken: Advanced trading features with robust security
• Gemini: Regulatory-focused exchange with insurance coverage
• Self-Custody Wallets: Trezor or Ledger for maximum security

Always verify platform security measures and regulatory compliance before transacting.

Frequently Asked Questions (FAQ)

Can I buy actual Bitcoin on Fidelity?

No. Fidelity only offers Bitcoin exposure through ETFs like FBTC. You cannot withdraw Bitcoin to external wallets.

What’s the minimum investment for FBTC?

You can buy fractional shares, making it possible to start with as little as $1.

Are Bitcoin ETFs safer than crypto exchanges?

ETFs eliminate exchange hacking risks but carry market volatility. Fidelity provides SIPC insurance up to $500,000 for securities.

Can I hold FBTC in my Roth IRA?

Yes. Bitcoin ETFs are eligible for IRAs, offering potential tax-free growth in Roth accounts.

How do I sell my Bitcoin ETF shares?

Navigate to your Fidelity portfolio, select FBTC, and place a sell order—proceeds settle in 2 business days.

Does Fidelity charge fees for Bitcoin ETFs?

No trading commissions, but FBTC has a 0.25% annual expense ratio deducted from fund assets.

Conclusion: Strategic Bitcoin Exposure Made Simple

While Fidelity doesn’t facilitate direct Bitcoin purchases, its ETF offerings provide a compliant, accessible entry point for mainstream investors. By following these steps to invest in FBTC, you gain regulated exposure to Bitcoin’s price movements within a familiar brokerage environment. For those prioritizing security over direct ownership, Fidelity’s platform delivers a balanced solution—just remember to research thoroughly and align investments with your risk tolerance.