Can I Trade Crypto on Fidelity? A Complete Guide

Fidelity has built a solid reputation as one of the most trusted brokerage firms in the United States, offering a broad suite of investment products ranging from stocks and mutual funds to retirement accounts. With the explosive growth of digital assets, many investors wonder, “can i trade crypto on fidelity?” The short answer is nuanced: while Fidelity does not let you directly buy and sell Bitcoin or Ethereum the way a crypto‑centric exchange does, it offers several pathways to gain crypto exposure through regulated products.

In this article, we’ll break down the current state of crypto trading at Fidelity, explore the alternatives the platform provides, compare fees and features, and give you practical tips on how to incorporate digital assets into a traditional portfolio. Whether you’re a seasoned Fidelity client curious about diversifying or a crypto‑enthusiast looking for a familiar brokerage, this guide will help you navigate the possibilities.

Can I Trade Crypto on Fidelity? Official Stance and Available Options

Fidelity’s official position is that it does not support direct cryptocurrency transactions on its core brokerage platform. This means you cannot place a market order to buy Bitcoin or any other altcoin the way you would with a ticker on the NYSE. However, the firm has recognized the demand for crypto exposure and introduced several indirect routes:

• Fidelity Digital Assets – A custodial service for institutional clients that stores Bitcoin and other major cryptocurrencies securely.
• Crypto‑related ETFs and ETNs – Products like the Grayscale Bitcoin Trust (GBTC) or ProShares Bitcoin Strategy ETF (BITO) that trade like stocks.
• Fidelity® Crypto Index Fund – A mutual fund that tracks a basket of crypto assets (available to qualified investors).

So, while you cannot directly trade Bitcoin on Fidelity, you can gain exposure through these regulated vehicles, effectively answering the question “can i trade crypto on fidelity?” with a qualified “yes, but indirectly.”

Can I Trade Crypto on Fidelity? Understanding the Indirect Routes

Let’s dive deeper into each alternative to see how they work, their pros and cons, and what you need to get started.

Direct Crypto Custody: Fidelity Digital Assets

Fidelity Digital Assets is tailored for institutional investors, high‑net‑worth individuals, and qualified custodial accounts. It provides secure, insured custody of Bitcoin and other major digital currencies, coupled with execution services through partnered exchanges.

• Eligibility: Minimum account size typically starts at $100,000, though exact thresholds vary.
• Security: Multi‑layer cold storage, biometric authentication, and insurance coverage for digital assets.
• Trading: While the platform itself does not act as an exchange, it offers seamless integration with select trading venues, allowing clients to buy or sell crypto with the backing of Fidelity’s compliance infrastructure.

If you meet the eligibility criteria and need a highly regulated environment for large crypto positions, Fidelity Digital Assets could be the answer to “can i trade crypto on fidelity?” for professional investors.

Crypto‑Focused ETFs and ETNs: The Retail Path

For most retail investors, ETFs and ETNs are the easiest way to add crypto exposure without leaving Fidelity’s familiar interface. Below are the most popular offerings:

Popular Crypto ETFs on Fidelity

• ProShares Bitcoin Strategy ETF (BITO) – Tracks Bitcoin futures contracts. It provides exposure to Bitcoin price movements without holding the actual coin.
• Valkyrie Bitcoin Strategy ETF (BTF) – Similar to BITO, focusing on Bitcoin futures.
• Amplify Transformational Data Sharing ETF (BLOK) – Invests in companies involved in blockchain technology, offering indirect crypto exposure.

These ETFs can be bought and sold just like any other stock on Fidelity’s platform, making them a straightforward solution for those asking “can i trade crypto on fidelity?” in a traditional sense.

ETNs and Trusts

Another option is the Grayscale Bitcoin Trust (GBTC), a publicly traded trust that holds Bitcoin. While GBTC trades at a premium or discount to its net asset value, it remains a popular way for investors to hold Bitcoin indirectly. However, be aware of the higher expense ratios compared to ETFs.

Mutual Funds and Index Funds: Fidelity’s Crypto Index Fund

Fidelity has launched a Crypto Index Fund that aggregates a selection of crypto assets, providing diversified exposure. It’s structured as a mutual fund, meaning you can invest in dollar amounts rather than shares, which is ideal for systematic investing.

• Minimum Investment: Typically $2,500 for regular accounts, but can be lower in retirement accounts.
• Expense Ratio: Around 0.75% – higher than traditional equity funds but comparable to many crypto funds.
• Liquidity: Fund shares settle at the next business day, not instantly like an exchange‑traded product.

For investors who want a “set‑and‑forget” approach, this fund answers the “can i trade crypto on fidelity?” query by providing a managed, diversified crypto basket.

Fees, Taxes, and Regulatory Considerations

Understanding the cost structure is crucial when deciding whether to use Fidelity for crypto exposure.

Fee Comparison

• ETF expense ratios: 0.45% – 0.65% (BITO, BTF).
• Mutual fund expense ratio: ~0.75% (Crypto Index Fund).
• Custody fees for Fidelity Digital Assets: Typically a flat fee plus a percentage of assets under custody, varying by agreement.

Unlike direct crypto exchanges, Fidelity does not charge per‑trade commission for ETFs, but the higher expense ratios can eat into long‑term returns. Be sure to factor in these ongoing costs.

Tax Implications

All crypto‑related securities are subject to capital gains tax in the U.S. When you sell a crypto ETF or mutual fund, you’ll receive a Form 1099‑B outlining your gains or losses. The tax treatment mirrors that of stocks, which can simplify reporting compared to dealing with multiple transaction records on a crypto exchange.

Regulatory Safeguards

Fidelity operates under SEC oversight, and its crypto products are registered with the appropriate regulatory bodies. This offers an extra layer of protection compared to unregulated crypto exchanges, which may lack insurance or robust compliance.

How to Get Started: Step‑by‑Step Guide

If you’ve decided that you want crypto exposure through Fidelity, follow these practical steps:

1. Open or log in to your Fidelity account. Existing customers can use the same credentials.
2. Fund your account. Transfer cash from your linked bank account or rollover assets from another brokerage.
3. Search for the desired ticker. For example, type “BITO” for the ProShares Bitcoin Strategy ETF.
4. Place your order. Choose market or limit order, specify quantity, and confirm.
5. Monitor performance. Use Fidelity’s portfolio tools to track price movements, dividend yields, and expense ratios.

If you’re interested in the custodial route, you’ll need to contact Fidelity’s institutional sales team to discuss eligibility, onboarding, and required documentation.

Comparing Fidelity with Other Platforms

While Fidelity offers a reliable, regulated environment, you might wonder how it stacks up against other popular platforms that allow direct crypto trading.

• Can You Trade Crypto on Robinhood? A Complete Guide – Robinhood provides direct crypto trading with zero commission, but its custody model is less robust than Fidelity’s.
• Can You Buy Crypto on Webull? Everything You Need to Know – Webull recently added crypto, offering a hybrid of direct trading and ETF exposure.
• Can You Day Trade on Crypto.com? A Complete Guide – Crypto.com is a dedicated crypto exchange with advanced trading tools, but it lacks the traditional brokerage oversight that Fidelity provides.

If you prioritize regulatory protection, integrated retirement accounts, and a single dashboard for all investments, Fidelity’s indirect methods may suit you better. Conversely, if you crave instant access to a wide array of altcoins and leverage, a dedicated crypto exchange could be more appropriate.

Tips for Managing Crypto Exposure in a Traditional Portfolio

Adding digital assets to a conventional portfolio can boost diversification, but it also introduces volatility. Here are a few best practices:

• Start Small: Allocate no more than 5‑10% of your total portfolio to crypto‑related products, especially if you’re new to the space.
• Use Dollar‑Cost Averaging (DCA): Invest a fixed amount regularly to smooth out price swings.
• Rebalance Periodically: Review your allocation quarterly and adjust to maintain your target risk profile.
• Stay Informed: Follow regulatory updates and market news, as the crypto landscape evolves rapidly.

By following these guidelines, you can responsibly answer “can i trade crypto on fidelity?” while keeping your broader financial goals in sight.

In summary, Fidelity does not support direct cryptocurrency purchases, but it offers multiple regulated pathways—ETFs, mutual funds, and custodial services—that let investors gain exposure to digital assets. Whether you’re a retail trader looking for a convenient ETF or an institutional client seeking secure custody, the answer to “can i trade crypto on fidelity?” is nuanced: you can trade crypto‑related products, and you can even hold actual coins through Fidelity Digital Assets if you meet the eligibility requirements.