In a significant move reflecting growing mainstream interest in digital assets, Fidelity Investments has officially launched Fidelity Crypto for IRAs, a new offering that enables U.S. adults to invest in Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) within a tax-advantaged retirement account.
This development marks another milestone in the integration of cryptocurrency into traditional financial planning, giving investors a secure and regulated way to include digital assets in their long-term retirement strategies.
What Is Fidelity Crypto for IRAs?
Fidelity Crypto for IRAs allows eligible U.S. residents aged 18 and over to allocate funds from their Roth IRA, traditional IRA, or rollover IRA toward select cryptocurrencies. The service operates seamlessly alongside a Fidelity Brokerage IRA—new investors deposit funds into their brokerage account and then transfer them directly to the crypto investment segment.
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Notably, the product comes with no account opening or maintenance fees, making it one of the most accessible entry points into crypto-backed retirement savings. However, trading activity is subject to the same spread as taxable accounts, meaning small transaction costs may still apply during trades.
All digital assets are securely held by Fidelity Digital Assets, the firm’s institutional-grade custody solution. These assets are stored in cold wallets—offline storage systems isolated from the internet—which significantly reduce exposure to hacking and cyber threats. This level of security underscores Fidelity’s commitment to safeguarding investor holdings using enterprise-level infrastructure.
Why Bitcoin, Ethereum, and Litecoin?
The initial selection of cryptocurrencies—BTC, ETH, and LTC—aligns with Fidelity’s existing retail crypto offering launched in 2022. The company evaluates potential additions based on several key criteria:
- Market demand and liquidity
- Regulatory clarity and compliance
- Decentralization and network resilience
- Proven track record of blockchain security
Bitcoin (BTC)
As the first and most widely adopted cryptocurrency, Bitcoin continues to dominate the market with a capitalization of approximately $1.7 trillion. Often referred to as “digital gold,” BTC is increasingly viewed as a long-term store of value, making it a natural fit for retirement portfolios.
Ethereum (ETH)
With a market cap around $250.1 billion, Ethereum ranks second in size but leads in utility. Its smart contract functionality powers decentralized finance (DeFi), non-fungible tokens (NFTs), and a vast ecosystem of blockchain applications. This versatility enhances its appeal as a strategic asset in diversified portfolios.
Litecoin (LTC)
Created in 2011 as a “lighter” alternative to Bitcoin, Litecoin is frequently dubbed “silver to Bitcoin’s gold.” It offers faster block generation times—2.5 minutes versus Bitcoin’s 10 minutes—resulting in quicker transaction confirmations. With a maximum supply of 84 million coins (four times Bitcoin’s cap), LTC also tends to have lower transaction fees, making it ideal for smaller or frequent transfers.
Seamless Integration with Existing Retirement Accounts
One of the standout features of Fidelity’s new offering is its integration model. Instead of creating a standalone crypto IRA, Fidelity links the crypto component directly to an existing Fidelity Brokerage IRA. This hybrid structure simplifies fund management while maintaining compliance with IRS regulations on retirement accounts.
Investors begin by funding their brokerage IRA, then choose how much they’d like to allocate to digital assets. From there, trades occur within the secure Fidelity platform—no need to use third-party exchanges or external wallets.
This streamlined process reduces complexity and lowers barriers for investors who may be new to cryptocurrency but want exposure as part of a balanced retirement strategy.
Fidelity’s Leadership in Digital Asset Innovation
With over a decade of experience in the digital asset space, Fidelity has emerged as a trusted leader at the intersection of traditional finance and emerging technologies. As the third-largest investment manager globally—behind only BlackRock and Vanguard—the firm oversees **$15.1 trillion in assets under administration**, including $5.9 trillion in discretionary assets as of December 31, 2024.
Its early adoption of crypto custody services for institutional clients laid the foundation for consumer-facing products like this IRA expansion. By leveraging its deep expertise in asset protection, regulatory compliance, and investor education, Fidelity positions itself not just as a provider, but as a guide in navigating the evolving crypto landscape.
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A Strategic Step Toward Broader Crypto Adoption
Fidelity’s introduction of crypto IRAs follows its earlier initiative in April 2022, when it launched a Digital Assets Account enabling employers to offer Bitcoin as an option within 401(k) plans. While adoption remains dependent on individual employer decisions, this earlier move signaled a shift toward employer-sponsored crypto inclusion.
Though specific data on participation rates remains undisclosed as of April 2025, industry analysts view these developments as harbingers of broader acceptance across the retirement planning sector.
Frequently Asked Questions (FAQ)
Q: Who is eligible to open a Fidelity Crypto IRA?
A: U.S. residents aged 18 and older who live in eligible states can open a Fidelity Crypto for IRAs account.
Q: Are there any fees associated with the account?
A: There are no account opening or maintenance fees. However, trades incur a spread similar to those in taxable brokerage accounts.
Q: How are my cryptocurrencies stored?
A: All digital assets are held in cold storage by Fidelity Digital Assets, providing high-level security against online threats.
Q: Can I invest in other cryptocurrencies beyond BTC, ETH, and LTC?
A: Not currently. Fidelity has limited the initial offering to these three assets based on market maturity, security, and regulatory considerations.
Q: Is my crypto IRA protected by SIPC?
A: While traditional securities in your IRA are covered by SIPC protection, cryptocurrency holdings are not currently included under SIPC coverage.
Q: Can I roll over an existing IRA into a Fidelity Crypto IRA?
A: Yes, rollover IRAs are supported, allowing you to transfer funds from another provider into your Fidelity Crypto for IRAs account.
The Future of Crypto in Retirement Planning
As more investors seek diversification beyond stocks and bonds, digital assets are becoming an increasingly viable component of retirement portfolios. Fidelity’s latest move reflects both customer demand and the firm’s confidence in the long-term role of blockchain-based assets.
By combining tax advantages, robust security, and seamless integration with traditional investing tools, Fidelity sets a new standard for how retirement accounts can evolve in the digital age.
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Whether you're a seasoned investor or just beginning to explore crypto, Fidelity’s structured approach offers a trusted pathway to include digital assets in your financial future—without compromising on safety or compliance.