How to Buy Bitcoin from Fidelity: Your Complete Guide to Bitcoin ETFs

Introduction: Bitcoin Investing Through Fidelity

As cryptocurrency enters mainstream finance, investors wonder how to buy Bitcoin from Fidelity – one of America’s largest brokerage firms. While Fidelity doesn’t offer direct Bitcoin purchases, it provides secure access to Bitcoin through Bitcoin spot ETFs (Exchange-Traded Funds). This comprehensive guide explains how to gain Bitcoin exposure through Fidelity’s platform, leveraging the convenience and regulatory safeguards of traditional investing.

Why Fidelity Doesn’t Sell Bitcoin Directly

Fidelity prioritizes regulated financial products. Instead of direct cryptocurrency transactions (like Coinbase or Binance), they offer:

• Bitcoin ETFs: SEC-approved funds holding actual Bitcoin
• Fidelity Wise Origin Bitcoin Fund (FBTC): Their proprietary ETF launched in January 2024
• Indirect exposure: Through Bitcoin-related stocks and blockchain ETFs

This approach aligns with Fidelity’s focus on investor protection and regulatory compliance.

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

1. Open/Link Your Account: Log into your existing Fidelity brokerage account or open a new one (individual/custodial/IRA)
2. Fund Your Account: Transfer cash via bank wire, ACH, or existing holdings
3. Search for Bitcoin ETFs: Type tickers like FBTC (Fidelity) or IBIT (iShares) in the trade tool
4. Place Your Order: Select ‘Buy’, enter shares (minimum 1 share), choose order type (market/limit)
5. Confirm and Execute: Review fees ($0 commission for FBTC) and submit
6. Monitor Holdings: Track performance under ‘Positions’ with real-time pricing

Top Bitcoin ETFs Available on Fidelity

• FBTC (Fidelity Wise Origin Bitcoin Fund): 0.25% expense ratio, physical Bitcoin backing
• IBIT (iShares Bitcoin Trust): BlackRock’s ETF with 0.25% fees
• BITB (Bitwise Bitcoin ETF): 0.20% fees with transparent audits
• ARKB (ARK 21Shares Bitcoin ETF): 0.21% fees, focuses on institutional security

Key Benefits of Using Fidelity for Bitcoin ETFs

• Zero Commission: Fidelity charges $0 trades for FBTC and other in-network ETFs
• Integrated Management: View crypto alongside stocks/ETFs in one dashboard
• Tax-Advantaged Options: Hold Bitcoin ETFs in IRAs for deferred growth
• Enhanced Security: SIPC insurance up to $500k and institutional-grade custody
• Research Tools: Access earnings reports and volatility analysis

Risks to Consider Before Investing

• Bitcoin’s extreme price volatility (30-50% monthly swings)
• Regulatory uncertainty around cryptocurrency assets
• ETF expense ratios (0.20%-0.25%) vs. direct crypto purchases
• No direct ownership of Bitcoin keys

Frequently Asked Questions (FAQ)

Q: Can I buy actual Bitcoin on Fidelity?
A: No. Fidelity only offers Bitcoin ETFs – not direct cryptocurrency purchases.

Q: What’s the minimum investment?
A: 1 share of a Bitcoin ETF (e.g., ~$60 for FBTC at current prices).

Q: Are Bitcoin ETFs safer than crypto exchanges?
A: Yes. ETFs eliminate hacking risks and offer SEC oversight, though Bitcoin’s inherent volatility remains.

Q: Can I transfer Bitcoin ETF shares to a crypto wallet?
A: No. ETF shares exist within brokerage accounts and can’t be moved to external wallets.

Q: Does Fidelity charge management fees?
A: No account fees, but ETFs have expense ratios (0.20-0.25%) built into pricing.

Conclusion: Strategic Bitcoin Exposure Made Simple

Learning how to buy Bitcoin from Fidelity means embracing Bitcoin ETFs as a regulated, accessible gateway. While you won’t own physical coins, Fidelity’s platform offers unparalleled security and integration for long-term investors. Start small with FBTC or diversify across multiple ETFs, and always balance crypto allocations with traditional assets in your portfolio.