In response to customer demand, Fidelity Investments on Wednesday quietly launched “Fidelity Crypto for IRAs” that allows U.S. adults to invest in Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC) in a tax-advantaged account.
The new crypto IRA product has no fees, and customers can invest in a Roth IRA, traditional IRA or rollover IRA, according to details listed on Fidelity’s website.
“Fidelity is committed to offering investment products and solutions to meet the changing needs and interests of our customers, accompanied by education and support,” a Fidelity spokesperson told 401(k) Specialist Thursday.
The new offering is designed similarly to its Fidelity Crypto retail offering (launched in 2022), meaning it is available to U.S. residents age 18 and over in eligible states. Fidelity Crypto for IRAs has no account opening or maintenance fees, but trades are subject to the same spread as the taxable account. Assets are custodied by Fidelity Digital Assets and held in a cold wallet, a type of cryptocurrency wallet that is not connected to the internet, making it one of the most secure methods for storing digital assets.
The Fidelity Crypto IRA operates in tandem with a Fidelity Brokerage IRA, where a new investor deposits funds into the brokerage account and then transfers them directly to the crypto account.
With more than a decade of experience in the digital assets space, Fidelity has a deep understanding of the digital assets ecosystem and has a reputation as a long-term leader in both financial services and the emerging crypto landscape. The company’s history of providing custody of digital assets and institutional grade security makes Fidelity uniquely positioned to offer this capability to interested customers.
The sole focus on Bitcoin, Ethereum and Litecoin for Fidelity Crypto for IRAs is consistent with the cryptocurrencies currently available on the Fidelity Crypto retail offering. The firm evaluates assets to add to the platform based on factors such as market support, regulation, decentralization, and the blockchains and their proven history of network security. Bitcoin and Ethereum have the two highest market caps among cryptocurrencies with approximately $1.7T and $250.1B respectively, while Litecoin is a decentralized, open-source cryptocurrency that ranks among the top 20 cryptocurrencies by market cap.
It was created in 2011 as a “lighter” alternative to Bitcoin, often referred to as the “silver to Bitcoin’s gold.” Litecoin has a block time of 2.5 minutes, compared to Bitcoin’s 10 minutes, making transactions significantly quicker. Litecoin has a maximum supply of 84 million coins, four times Bitcoin’s 21 million. And it typically offers lower fees compared to Bitcoin, making it suitable for smaller or frequent transactions.
Boston-based Fidelity Investments is the third largest investment manager in the world behind BlackRock and Vanguard, with assets under administration of $15.1 trillion, including discretionary assets of $5.9 trillion as of Dec. 31, 2024.
Back in April 2022, Fidelity introduced the Digital Assets Account, allowing employers to offer Bitcoin as an investment option within their 401(k) retirement plans. The adoption of this separate offering depends on individual employers electing to incorporate it into their retirement plans. As of April 2025, specific data on employer adoption rates and participant usage have not been publicly disclosed.
SEE ALSO:
• New Data Shows Shift Toward Crypto Asset Diversification in IRAs
• Growing Number of Advisors Now Recommend Crypto
• Trump Signs Executive Order Supporting Crypto
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
