Fidelity unveils crypto IRAs with 1% transaction fee

Fidelity Investments has launched new retirement accounts allowing Americans to invest in cryptocurrencies with minimal fees.

The offerings include a traditional IRA and two Roth IRAs, including a rollover option.

Investors can trade Bitcoin (CRYPTO:BTC), Ether (CRYPTO:ETH), and Litecoin (CRYPTO:LTC) under a 1% spread fee, with no additional charges for account opening or maintenance.

Fidelity Digital Assets, the firm’s crypto subsidiary, will manage the accounts, marking a shift from institutional-focused services to retail investors.

Most crypto assets will be held in cold storage to enhance security.

The move aligns with growing interest in digital assets for retirement planning. Historically, direct crypto purchases in IRAs were uncommon, but recent developments—such as Bitcoin ETFs and self-directed Bitcoin IRAs—have expanded access since 2024.

Despite increasing adoption, concerns persist about volatility.

The U.S. Department of Labor has warned investors of potential risks, with Assistant Secretary Ali Khawar highlighting the extreme price fluctuations of digital assets.

Fidelity’s decision comes amid broader efforts to integrate cryptocurrencies into retirement plans. Senator Tommy Tuberville recently reintroduced legislation to permit crypto investments in 401(k) plans by easing regulatory restrictions.

While Fidelity’s initiative could drive further adoption among financial institutions, it also underscores the need for careful risk assessment in retirement planning.