Connect with us

Coin Market

Fidelity introduces retirement accounts with minimal-fee crypto investing

Published

on

Fidelity, a financial services company with $5.9 trillion in assets under management, has introduced new retirement accounts that will allow Americans to invest in crypto nearly fee-free.

The three accounts — a tax-deferred traditional IRA and two Roth IRAs (one is a rollover) — permit the buying and selling of Bitcoin (BTC), Ether (ETH), and Litecoin (LTC). While there are no fees to open or maintain the accounts, Fidelity charges a 1% spread on the execution price of crypto buy and sell transactions.

The crypto IRAs are offered by Fidelity Digital Assets, a subsidiary of Fidelity that has traditionally offered institutional investors the opportunity to buy and sell crypto.

The broadening of its client base may be another signal of the changing crypto landscape in the United States, which has seen the adoption of a strategic Bitcoin reserve and multiple companies, including stablecoin issuer Circle, filing for an initial public offering.

Fidelity states that, for security, it holds the majority of its crypto in cold storage, which consists of crypto wallets not connected to the internet.

Related: Bitcoin ETFs for retirement planning: A beginner’s guide

BTC and ETH exposure already offered for retirement accounts

While the direct purchase of cryptocurrencies in an IRA has never been strictly prohibited, few IRA providers have allowed such purchases, according to Investopedia. Therefore, Fidelity’s new IRAs may signal a change in the environment.

Still, for enthusiasts of BTC and ETH, there have been other options since 2024, such as exchange-traded funds (ETFs) of those corresponding coins.

Since the debut of those ETFs, investors in the US have been able to gain exposure to crypto markets from their retirement accounts — depending on the brokerage. There has also been the rise of Bitcoin IRAs, which are self-directed retirement accounts that offer tax advantages.

Some crypto companies offer digital-asset-specific IRAs like BitIRA, where individuals can add altcoins such as LTC to their retirement portfolios.

The move to allow more Americans to invest crypto into retirement accounts may be gaining momentum. On April 1, Alabama Senator Tommy Tuberville announced the reintroduction of a bill to allow Americans to add cryptocurrency to their 401(k)s. The process would involve scaling back regulations issued by the Department of Labor.

Magazine: X Hall of Flame: Bitcoin will ‘start ripping’ as Trump’s polls improve — Felix Hartmann 

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Coin Market

Crypto protocols pledge 43K ETH to restore rsETH backing

Published

on

By

Mantle, EtherFi Foundation, Golem Foundation, Lido DAO, Ethena, LayerZero, Ink Foundation and Tyrdo have all made pledges to the “DeFi United” recovery effort.

Continue Reading

Coin Market

US soldier charged over $400K Polymarket bet on Maduro’s capture

Published

on

By

US prosecutors alleged that Gannon Ken Van Dyke asked Polymarket to delete his account after profiting from trades tied to the military operation in Venezuela.

Continue Reading

Coin Market

Critical Bitcoin trend change in works, but analysts say daily close above $80K required

Published

on

By

Bitcoin’s rally above $79,000 may be a sign that the downtrend is ending, but a multi-day candle close above $80,000 would help strengthen the odds of a trend change holding.

Continue Reading

Trending