How to Buy Bitcoin from Fidelity: Your Step-by-Step ETF Guide

Introduction: Accessing Bitcoin Through a Trusted Financial Partner

As cryptocurrency gains mainstream traction, investors increasingly seek secure avenues to gain Bitcoin exposure. Fidelity Investments—a $4.9 trillion asset management giant—offers a regulated pathway via its Bitcoin ETF. While Fidelity doesn’t sell physical Bitcoin directly to retail investors, its Fidelity Wise Origin Bitcoin Fund (FBTC) provides seamless access to Bitcoin’s price movements through traditional brokerage accounts. This guide details how to buy Bitcoin exposure from Fidelity, leveraging their institutional-grade security and user-friendly platform.

Understanding Fidelity’s Bitcoin ETF (FBTC)

Fidelity Wise Origin Bitcoin Fund (ticker: FBTC) is an exchange-traded fund that holds actual Bitcoin, tracking its market price. Launched in January 2024 following SEC approval, it combines cryptocurrency access with Fidelity’s brokerage infrastructure. Key features include:

• Regulated Framework: Operates under strict SEC oversight
• Direct Bitcoin Holdings: Backed by physical Bitcoin stored in Fidelity’s cold storage
• Tax-Advantaged Access: Holdable in IRAs, 401(k)s, and taxable accounts
• Low Expense Ratio: 0.25% annual fee (as of 2023)

Step-by-Step: How to Buy Fidelity’s Bitcoin ETF (FBTC)

1. Open a Fidelity Brokerage Account

If you don’t have an account, visit Fidelity.com and click “Open an Account.” Choose between:

• Individual brokerage account
• Joint account
• Retirement accounts (Traditional/Roth IRA)

Complete identity verification (SSN, ID upload) and fund your account via bank transfer, wire, or existing assets.

2. Fund Your Account

Navigate to “Transfer Money” and:

• Link your bank account via Plaid or manual verification
• Initiate an electronic transfer (1-3 business days)
• Minimum funding: $0 (no account minimum)

3. Search and Select FBTC

In your portfolio dashboard:

• Use the trade ticket and enter ticker “FBTC”
• Confirm full name: “Fidelity Wise Origin Bitcoin Fund”
• Review real-time price and performance charts

4. Place Your Order

Choose order type:

• Market Order: Execute immediately at current price
• Limit Order: Set target buy price

Enter share quantity (fractional shares supported). Review fees ($0 commission) and submit.

5. Monitor and Manage Holdings

Track FBTC performance under “Positions.” Set price alerts, reinvest dividends, or automate recurring investments via Fidelity’s Auto-Invest feature.

Why Choose Fidelity for Bitcoin Exposure?

• Security First: Institutional-grade custody with offline storage
• Integration: Unified view with stocks, bonds, and other ETFs
• Tax Efficiency: Hold in IRAs for deferred/ tax-free growth
• Educational Resources: Webinars, research reports, and 24/7 support

Risks and Limitations

While FBTC simplifies access, consider:

• Volatility: Bitcoin’s price can swing 10%+ daily
• Indirect Ownership: You hold ETF shares, not actual Bitcoin
• Regulatory Uncertainty: Evolving crypto policies may impact funds
• No Wallet Transfers: Cannot move BTC to external wallets

Frequently Asked Questions (FAQ)

Can I buy actual Bitcoin from Fidelity?

No. Fidelity currently only offers Bitcoin exposure via FBTC ETF for retail investors. Physical Bitcoin purchases are limited to institutional clients through Fidelity Digital Assets.

What’s the minimum investment for FBTC?

No minimum. Buy fractional shares (e.g., $10 worth) since FBTC trades like a stock.

Are there transaction fees?

Fidelity charges $0 commissions for online U.S. ETF trades. The fund has a 0.25% annual expense ratio deducted automatically.

Can I hold FBTC in my retirement account?

Yes. FBTC is available in Fidelity IRAs, Roth IRAs, and 401(k) plans where brokerage options are enabled.

How is this different from Coinbase?

Fidelity’s ETF offers regulatory protection and integration with traditional investments but doesn’t allow spending/transferring Bitcoin. Coinbase enables direct ownership and crypto transactions.

Is my FBTC investment insured?

ETF shares are protected by SIPC up to $500,000. The underlying Bitcoin isn’t FDIC/SIPC insured but uses Fidelity’s multi-signature cold storage.

Conclusion: Simplifying Crypto in a Familiar Framework

Fidelity bridges traditional finance and cryptocurrency through its Bitcoin ETF, offering a compliant, low-friction path for investors. By following these steps to purchase FBTC, you gain Bitcoin exposure without navigating exchanges or digital wallets. As always, consult a financial advisor to align investments with your risk tolerance. Ready to start? Log into your Fidelity account or open one today to begin your Bitcoin journey.