Cryptocurrency has become impossible to ignore, and Fidelity Investments, a heavyweight in the U.S. financial world, has been quietly carving out a major role in this space. From mining Bitcoin back in 2014 to launching retail trading and spot ETFs, Fidelity has made crypto accessible to everyday investors without losing its reputation for reliability. For Americans looking to dip their toes into digital assets, Fidelity’s platform is a compelling option, but it’s not without its quirks. HIVEEX will lay out the full picture of Fidelity’s crypto offerings—focusing on their ETFs, fee structure, and account setup—in a way that’s straightforward and grounded in facts. Whether you’re a crypto newbie or a seasoned trader, here’s what you need to know to navigate Fidelity’s crypto world.
From Bitcoin Mining to Mainstream
Fidelity didn’t just jump on the crypto bandwagon; it was an early adopter. In 2014, while most Wall Street firms were still scoffing at Bitcoin, Fidelity started mining it, betting on blockchain’s long-term potential. By 2018, they launched Fidelity Digital Assets, a division focused on institutional custody and trading. Fast forward to 2021, and Fidelity Crypto arrived, letting regular folks trade Bitcoin, Ethereum, and Litecoin right from the Fidelity app.
What makes Fidelity stand out is its blend of old-school financial rigor and crypto innovation. Fidelity Digital Asset Services, LLC, the engine behind Fidelity Crypto, is a New York-chartered trust company (NMLS ID 1773897), which means it’s held to stricter regulatory standards than many crypto exchanges. With over $4 trillion in assets under management as of 2024, Fidelity brings a level of trust that’s hard to match in a market rife with hacks and fraud. For U.S. investors, this credibility is a big deal—it’s like having a familiar guide in a wild new frontier.
Fidelity’s Crypto ETFs: Bitcoin and Ethereum, Simplified
Fidelity offers two spot exchange-traded products (ETPs) that let you invest in crypto prices without dealing with wallets or private keys: the Fidelity Wise Origin Bitcoin Fund (FBTC) and the Fidelity Ethereum Fund (FETH). These are game-changers for investors who want exposure to crypto through a traditional brokerage account.
Fidelity Wise Origin Bitcoin Fund (FBTC)
Approved by the SEC in January 2024, FBTC tracks Bitcoin’s price and trades on the Cboe BZX Exchange. Unlike futures-based ETFs, FBTC is a spot ETP, meaning it holds actual Bitcoin, so its price moves closely with the crypto market. Fidelity acts as the custodian, which cuts down on third-party risks. The fund’s expense ratio is 0.25% per year—pretty reasonable when you compare it to BlackRock’s iShares Bitcoin Trust (IBIT) at 0.25% or Grayscale’s Bitcoin Trust (GBTC) at a steep 1.5%.
Here’s the rundown on FBTC:
- Minimum Investment: Just the cost of one share, usually under $100.
- Trading Hours: Standard market hours (9:30 AM–4:00 PM ET), not 24/7 like Bitcoin itself.
- Account Flexibility: You can hold it in brokerage accounts, IRAs, or trusts.
- Risks: Bitcoin’s wild price swings, potential liquidity issues, and no coverage under traditional ETF protections like the Investment Company Act of 1940.
Fidelity Ethereum Fund (FETH)
Launched in 2024, FETH tracks Ether, the fuel of the Ethereum network. It’s also a spot ETP, holding 100% Ether, with Fidelity as the custodian. The expense ratio matches FBTC at 0.25%, keeping costs low. FETH appeals to those excited about Ethereum’s role in things like decentralized finance (DeFi) and smart contracts. Fidelity’s been exploring adding staking to FETH, which could let the fund earn rewards by helping secure the Ethereum network—kind of like dividends. But this might bump up the expense ratio, and as of April 2025, it’s still just talk.
FETH highlights:
- Accessibility: Tradable in most Fidelity accounts, including IRAs.
- Volatility: Ether’s price can be a rollercoaster, sometimes moving 10% or more outside trading hours.
- Tracking: Fees and rebalancing can cause slight deviations from Ether’s spot price.
Thematic Crypto ETFs
Fidelity also offers two ETFs for those who want exposure to the crypto ecosystem without betting directly on coins:
- Fidelity Crypto Industry and Digital Payments ETF (FDIG): Tracks companies like Coinbase, Riot Platforms, and Visa that are tied to crypto and digital payments. Expense ratio: 0.59%.
- Fidelity Metaverse ETF (FMET): Focuses on firms building blockchain-based virtual worlds, like Meta and Nvidia. Expense ratio: 0.59%.
These ETFs invest in stocks, not crypto, so they’re less volatile but also less tied to Bitcoin or Ethereum prices. They’re a good pick for investors who believe in the broader crypto industry but want to avoid the stomach-churning ups and downs.
| ETF/ETP | Ticker | Asset Type | Expense Ratio | Underlying Asset | Trading Platform |
|---|---|---|---|---|---|
| Fidelity Wise Origin Bitcoin Fund | FBTC | Spot ETP | 0.25% | Bitcoin | Cboe BZX Exchange |
| Fidelity Ethereum Fund | FETH | Spot ETP | 0.25% | Ether | Cboe BZX Exchange |
| Fidelity Crypto Industry and Digital Payments ETF | FDIG | Thematic ETF | 0.59% | Equities | Nasdaq |
| Fidelity Metaverse ETF | FMET | Thematic ETF | 0.59% | Equities | Nasdaq |
Fidelity Crypto Fees: Breaking Down the Costs
Fidelity’s fees are clear, but they’re not always the cheapest. Whether you’re trading crypto directly or buying ETFs, here’s what you’ll pay.
Fidelity Crypto Trading Fees
With Fidelity Crypto, you can trade Bitcoin, Ethereum, and Litecoin starting at just $1. Fidelity calls it “commission-free,” but there’s a catch: a spread of up to 1% on every trade (buy and sell). So, a $1,000 Bitcoin buy could cost you $10, and selling adds another $10. Compared to Coinbase, where fees can hit 4% depending on how you pay, Fidelity’s spread is decent. But platforms like Kraken often charge 0.5% or less, so shop around if you’re trading frequently.
Other fee details:
- No Account Fees: No charges for inactivity or maintenance.
- Network Fees: Blockchain transactions usually have fees, but Fidelity covers these for trades on its platform.
- Taxes: Every trade is a taxable event, and Fidelity provides cost basis data but no direct tax forms for crypto accounts, so you’ll need to track gains yourself.
ETF/ETP Fees
Fidelity’s crypto ETPs (FBTC and FETH) don’t charge trading commissions for online buys in Fidelity accounts, but you’ll face:
- Expense Ratios: 0.25% annually for FBTC and FETH, taken out of the fund’s value.
- Activity Assessment Fee: $0.01–$0.03 per $1,000 when you sell, a standard fee for Fidelity ETFs.
- Bid-Ask Spread: The gap between buy and sell prices, which is usually small for FBTC and FETH due to strong liquidity.
The thematic ETFs (FDIG and FMET) also skip trading commissions but have higher expense ratios (0.59%) and the same sell fee.
How Fidelity Stacks Up
| Platform | Trading Fee (Crypto) | Spot ETF Fee | Account Minimum |
|---|---|---|---|
| Fidelity Crypto | Up to 1% spread | 0.25% (FBTC/FETH) | $1 |
| Coinbase | 1%–4% | N/A | $2 |
| Robinhood | 0.5%–1.5% spread | N/A | $1 |
| BlackRock (IBIT) | N/A | 0.25% | Share price |
Fidelity’s trading fees are mid-range—not as cheap as Kraken but better than Coinbase. For ETFs, the 0.25% expense ratio is on par with the best in the business, making FBTC and FETH solid for long-term investors.
Fidelity Crypto Account: Getting Started
Setting up a Fidelity Crypto account is as easy as ordering takeout. It’s built into Fidelity’s broader platform, so it feels familiar if you already trade stocks with them.
How to Set It Up
- Who Can Join: U.S. citizens over 18 in states where Fidelity Digital Assets operates (most states, but check for restrictions).
- Brokerage Account: You need a Fidelity brokerage account to fund your crypto account. Don’t have one? Fidelity sets it up during the process, and it takes just a few minutes.
- Minimums: Start trading with $1, and there are no account minimums or ongoing fees.
- Funding: Move money from your brokerage account to your crypto account. Want to use a bank transfer? It has to go through the brokerage account first.
What You Get (and What You Don’t)
- Trading: Buy and sell Bitcoin, Ethereum, and Litecoin with market or limit orders, 24/7.
- Security: Fidelity uses top-tier custody with cold storage and multi-signature tech. Assets aren’t FDIC- or SIPC-insured, but the NYDFS oversight adds a safety net.
- Tax-Advantaged Accounts: You can’t trade crypto in IRAs, but FBTC and FETH can go in tax-advantaged accounts.
- Big Limitation: You can’t send or receive crypto to external wallets, so no using your Bitcoin for DeFi or payments. Fidelity says this might change, but there’s no timeline.
User Experience
The Fidelity Crypto platform lives in the Fidelity Investments app, so it’s intuitive for anyone used to their interface. You get real-time prices from Coin Metrics, beginner-friendly guides like “Crypto Basics,” and 24/7 support by chat or phone (800-343-3548). That said, some folks on Reddit’s r/FidelityCrypto gripe about the 1% spread and lack of wallet transfers, saying it feels like Fidelity’s half-hearted attempt compared to Coinbase or Binance.
Risks to Watch Out For
Crypto isn’t a safe bet, and Fidelity’s platform doesn’t change that. Here’s what U.S. investors need to keep in mind:
- Price Swings: Bitcoin and Ethereum can drop 10% in a day, and FBTC/FETH will follow.
- Regulation: Crypto ETPs don’t have the same protections as stock ETFs, and new laws could shake things up.
- Taxes: Every trade is taxable, and Fidelity’s lack of crypto-specific tax forms means you’ll need to do some legwork come tax season.
- Limited Features: No wallet transfers mean Fidelity Crypto is more for holding than using crypto in the broader ecosystem.
On the plus side, Fidelity’s regulated custody and integration with traditional accounts make it a less risky entry point than sketchy offshore exchanges.
Getting Started with Fidelity Crypto
Want to jump in? Here’s how:
- Open a Fidelity Account: Sign up for a Fidelity brokerage account if you don’t have one.
- Get Crypto Access: Apply for a crypto account via the app or website. It’s usually approved instantly.
- Add Funds: Transfer cash from your brokerage account to your crypto account.
- Start Trading: Buy Bitcoin, Ethereum, or Litecoin, or grab FBTC/FETH shares in your brokerage account.
- Track It: Use Fidelity’s tools to monitor your investments and talk to a tax pro for reporting.
For ETFs, just search FBTC or FETH in your brokerage account, place an order, and treat them like any stock.
Learning and Support
Fidelity doesn’t leave you hanging. They offer:
- Crypto Basics: Articles and videos on blockchain, wallets, and more.
- Help Desk: 24/7 support by chat or phone, with crypto-specific experts.
- Newsletter: Monthly updates on markets and Fidelity’s crypto plans.
- ETF Screener: Compare FBTC, FETH, FDIG, FMET, and other ETFs.
These are great for beginners, but if you’re deep into crypto, you might find them a bit basic compared to sites like CoinDesk.
Crypto in Your IRA
One of Fidelity’s best features is letting you hold crypto ETPs in tax-advantaged accounts. You can’t trade Bitcoin directly in an IRA, but FBTC and FETH can go in IRAs, trusts, or other accounts, giving you tax benefits alongside crypto exposure. This is huge for retirement planning, as most crypto platforms don’t offer this. Just remember: crypto’s high risk means it’s not for everyone’s nest egg.
