As cryptocurrencies continue to gain popularity, more and more investors are exploring ways to incorporate digital assets into their portfolios. With the rise of platforms dedicated to crypto trading, it’s no surprise that traditional investment firms are also stepping into the digital currency space. One such company is Fidelity Investments, a well-established player in the financial services industry. But the question remains: Can you buy crypto from Fidelity?
In this article, we’ll dive into Fidelity’s offerings when it comes to cryptocurrency and explore how you can buy crypto through their platform, if at all.
1. Fidelity’s Role in the Crypto Space
Fidelity has been making waves in the cryptocurrency space for several years now, although not in the same way that dedicated crypto exchanges like Coinbase or Binance do. Instead of offering a straightforward way to buy, sell, and trade cryptocurrencies directly to retail investors, Fidelity has focused on providing institutional-level services, with a focus on helping large institutions manage crypto assets.
Fidelity’s interest in crypto began with the launch of Fidelity Digital Assets in 2018. This subsidiary was created specifically to offer crypto custodial services and trade execution for institutional investors, such as hedge funds, family offices, and other large-scale financial institutions. This offering made Fidelity one of the first traditional financial institutions to engage heavily with the digital currency market.
Fidelity Digital Assets:
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Crypto Custody: Ensuring that crypto assets are securely stored.
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Crypto Trading: Facilitating over-the-counter (OTC) trading for institutional clients.
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Institutional Services: Providing large institutions with access to cryptocurrency-related services.
2. Can Individual Retail Investors Buy Crypto from Fidelity?
While Fidelity does not directly offer retail investors a platform to purchase cryptocurrencies like Bitcoin, Ethereum, or others, it does offer a few ways for individuals to gain exposure to crypto without directly buying it through their platform.
1. Fidelity Crypto ETFs
For individual investors who want to gain exposure to the cryptocurrency market without directly purchasing crypto, Fidelity offers a Bitcoin-linked exchange-traded fund (ETF). The Fidelity Crypto Industry and Digital Payments ETF (FDIG) is an example of a product that gives investors indirect access to crypto-related companies. The ETF includes companies that are involved in blockchain technology, cryptocurrency mining, and digital payments, such as MicroStrategy and Coinbase.
By purchasing shares in such an ETF, investors are indirectly gaining exposure to the price movements of cryptocurrencies, although they are not directly buying or holding digital assets themselves.
2. Fidelity and Crypto Mining Stocks
Another way to gain exposure to the crypto market via Fidelity is by investing in crypto mining stocks. These are companies that mine cryptocurrencies like Bitcoin and Ethereum. Fidelity’s platform allows investors to buy stocks in mining companies like Riot Blockchain, Marathon Digital Holdings, and Bitfarms. Investing in these stocks doesn’t give you direct ownership of cryptocurrencies, but it does allow you to capitalize on the growth of the digital currency mining industry.
3. Fidelity’s Stance on Crypto
Fidelity has always been a strong advocate for digital assets, particularly Bitcoin. The company’s founder and CEO, Abigail Johnson, has been one of the more vocal champions of cryptocurrency in the traditional financial world. Johnson even revealed that she owns Bitcoin personally and has long been convinced of the potential of blockchain technology.
However, Fidelity has made it clear that they are prioritizing services for institutional clients rather than retail investors. This has led some to question when, or if, Fidelity will offer crypto trading to individual retail investors directly.
Fidelity’s Focus:
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Institutional Solutions: Fidelity is mostly focused on serving institutional investors and has built a reputation as a trusted partner for large organizations looking to secure and manage digital assets.
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Long-Term View: Fidelity has positioned itself as a long-term player in the space, with its leadership in crypto custody and trading solutions helping to foster trust among institutional clients.
4. Alternatives for Retail Investors: Other Platforms to Buy Crypto
For retail investors looking to buy cryptocurrencies like Bitcoin, Ethereum, or others directly, Fidelity may not be the best platform. However, there are many other options to explore. Here are some of the most popular platforms where individuals can easily buy, sell, and trade cryptocurrencies:
1. Coinbase
Coinbase is one of the most well-known and user-friendly crypto exchanges available. It offers an easy-to-use platform for beginners and advanced traders alike. Coinbase allows users to buy, sell, and store a wide range of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and many others.
2. Binance
Binance is a global cryptocurrency exchange that offers a wide selection of digital assets. It features advanced trading tools for experienced users, while also providing easy options for beginners.
3. Kraken
Kraken is a popular exchange known for its strong security measures and wide range of available cryptocurrencies. It’s ideal for investors who want to gain exposure to both traditional crypto assets and newer, lesser-known tokens.
4. Gemini
Gemini is another well-established exchange based in the United States. It is known for its robust security and regulatory compliance. It also offers users the ability to earn interest on some digital assets.
5. Fidelity’s Future in Crypto
Given Fidelity’s proactive stance on blockchain technology and digital assets, it is likely that the company will eventually offer more opportunities for individual retail investors to engage in the crypto market. There has been speculation that Fidelity might eventually offer a more direct platform for buying and trading cryptocurrencies, especially given the growing demand for these assets.
For now, however, Fidelity remains focused on institutional clients. Investors who want to buy crypto directly will need to look elsewhere, but those who prefer indirect exposure via ETFs, stocks, or institutional services can still benefit from Fidelity’s expertise in the crypto space.
Conclusion
While Fidelity has made significant strides in integrating digital assets into its offerings, it currently does not provide a platform for individual retail investors to buy or trade cryptocurrencies directly. Instead, Fidelity focuses on institutional solutions, offering products like crypto ETFs and crypto mining stocks for those looking to gain exposure to the market.