Fidelity Investments, a Wall Street giant serving over 37 million customers, has recently expanded access to its Fidelity Crypto platform. This allows users to buy and sell Bitcoin and Ethereum through their existing Fidelity Investments app with a minimum transaction of just $1. The service is available 24/7, leveraging the institutional-grade security Fidelity Digital Assets has offered since 2018.
Eligibility is currently limited to U.S. citizens aged 18 and above residing in serviceable states. This move signals Fidelity's continued commitment to cryptocurrency integration, a journey that began years ago.
Fidelity's Long-Term Crypto Vision
Fidelity's engagement with digital assets isn't a recent reaction to market trends. It's a multi-year, strategic effort to understand, build, and offer services within the crypto ecosystem.
Establishing a Digital Asset Exchange
Fidelity's exploration started in 2014. By 2015, the company was accepting Bitcoin donations, and by 2016, it was testing its first digital asset wallet and storage solutions. This groundwork led to a major milestone in 2018 with the formation of Fidelity Digital Asset Services (FDAS). This subsidiary was created specifically to provide cryptocurrency custody and trade execution services for institutional investors, making Fidelity one of the first major Wall Street firms to do so. By 2019, FDAS went live with select clients and expanded its operations to Europe, establishing a new office in the UK.
Early Mining Operations and Blockchain Research
The drive behind Fidelity's crypto foray is strongly supported by its leadership. CEO Abigail Johnson has been a vocal proponent of digital assets. As early as 2017, she revealed that Fidelity had a dedicated internal division mining Bitcoin and Ethereum, a project that was already profitable. The company was also actively researching enterprise applications for blockchain technology. Johnson has consistently reaffirmed her belief in the long-term fundamentals of crypto, even during market downturns. Her early push into mining was driven by a desire to deeply understand the ecosystem, despite initial internal skepticism.
Integrating Bitcoin into Retirement Plans
In a significant move for mainstream adoption, Fidelity took steps to include Bitcoin in retirement planning. The company announced that employees of the 23,000 businesses using Fidelity for their 401(k) management could choose to allocate a portion of their retirement savings to Bitcoin. This initiative provides a new avenue for long-term, regulated exposure to digital assets for retail investors.
Pursuing a Bitcoin Index Fund
Fidelity also sought to create a traditional investment vehicle for Bitcoin. The company filed with the U.S. Securities and Exchange Commission (SEC) for a Bitcoin-based index fund, the "Wise Origin Bitcoin Index Fund." This effort, led by Chief Strategy Officer Peter Jubber, aimed to offer investors a familiar fund structure for gaining Bitcoin exposure. However, like many similar proposals, the application was rejected by the SEC in early 2022. The regulatory body cited concerns about preventing fraud and market manipulation to protect investors and the public interest.
Gaining Regulatory Approval
A critical part of Fidelity's strategy has been working within the regulatory framework. In 2019, Fidelity Digital Assets applied for and received a trust charter from the New York State Department of Financial Services (NYDFS). This approval was a crucial stamp of legitimacy, allowing the company to operate as a limited-purpose trust company in New York. This status provides clients with assurance that the firm meets rigorous regulatory standards for security and compliance.
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Frequently Asked Questions
What is Fidelity Crypto?
Fidelity Crypto is a service within the Fidelity Investments app that allows eligible retail customers to buy and sell Bitcoin and Ethereum. It features low minimums and leverages the security infrastructure of its institutional-focused arm, Fidelity Digital Assets.
Who can use Fidelity's crypto trading service?
Currently, the service is available only to U.S. citizens who are at least 18 years old and reside in a state where Fidelity offers its crypto services. You must have or open a Fidelity account to access it.
Why is Fidelity's involvement in crypto significant?
Fidelity is one of the world's largest and most traditional financial institutions. Its long-term, multi-faceted commitment to crypto—from mining and research to retail trading and retirement products—lends immense credibility and accelerates mainstream adoption.
Did Fidelity launch a Bitcoin ETF?
Fidelity applied to the SEC for a Bitcoin index fund, not an ETF. This application was rejected. However, the company has since launched a spot Bitcoin ETF (FBTC) following broader regulatory approval in early 2024.
How does Fidelity ensure the safety of crypto assets?
Fidelity Digital Assets uses a combination of cold storage custody, proprietary security technology, and institutional-grade operational procedures to secure digital assets. Its NYDFS trust charter further underscores its commitment to regulatory compliance.
What other crypto services does Fidelity offer?
Beyond retail trading, Fidelity provides institutional-grade custody, trade execution, and a spot Bitcoin ETF. Its 401(k) plan offering also allows for Bitcoin exposure, showcasing a wide range of products for different investor types.