How to Buy Bitcoin ETFs on Fidelity
Investing in Bitcoin has become more accessible with the introduction of BTC spot exchange-traded funds (ETFs) like the Fidelity Wise Origin Bitcoin Fund (FBTC).
This fund allows investors to gain exposure to Bitcoin's price movements without directly purchasing the cryptocurrency.
Here's a step-by-step guide on how to buy Bitcoin ETFs through Fidelity.
Step 1: Open a Fidelity Brokerage Account
If you don't already have a Fidelity brokerage account, you'll need to open one. This can be done online by visiting Fidelity.com and completing the application process. Ensure you have the necessary identification and financial information ready.
Step 2: Fund Your Account
Once your account is set up, deposit funds into it. Fidelity offers various methods for funding, including bank transfers, wire transfers, and check deposits. Choose the method that suits you best and ensure your account has sufficient funds to make your desired investment.
Step 3: Search for Bitcoin ETFs
After funding your account, log in to your Fidelity brokerage account.
Use the search function to look up the different available publicly traded Bitcoin ETFs.
| Bitcoin ETF Name | Expense Ratio |
|---|---|
| iShares Bitcoin ETF Trust (IBIT) | 0.25% |
| Fidelity Wise Origin Bitcoin Fund (FBTC) | 0.25% |
| Grayscale Bitcoin ETF Trust (GBTC) | 1.50% |
| ARK 21Shares Bitcoin ETF (ARKB) | 0.21% |
| Bitwise Bitcoin ETF (BITB) | 0.20% |
| ProShares Bitcoin ETF (BITO) | |
| VanEck Bitcoin ETF (HODL) | 0% |
. This will bring up the fund's profile, where you can view its performance, holdings, and other relevant information.
Step 4: Place an Order
To purchase shares of FBTC, click on the “Trade” or “Buy” button on the fund's profile page. You'll be prompted to enter the number of shares you wish to purchase or the dollar amount you'd like to invest. Choose the order type (e.g., market or limit order) and review your order before submitting it. (Stock and ETF trading | Ticket how-to video – Fidelity Investments)
Step 5: Monitor Your Investment
After your order is executed, the FBTC shares will appear in your portfolio. You can monitor the performance of your investment through Fidelity's platform, set up alerts, and access various tools and resources to help manage your investment.
Additional Considerations:
- Risk Tolerance: Investing in Bitcoin ETFs carries risks similar to those of the underlying cryptocurrency, including high volatility. Ensure that such an investment aligns with your risk tolerance and investment goals.
- Tax Implications: Be aware of the tax implications associated with investing in ETFs. Consult with a tax professional to understand how this investment may affect your tax situation.
- Diversification: While Bitcoin ETFs offer exposure to cryptocurrency, it's essential to maintain a diversified portfolio to mitigate risk.
By following these steps, you can invest in Bitcoin ETFs through Fidelity, gaining exposure to the cryptocurrency market within a traditional investment framework.
