Fidelity Investments is launching zero-fee retirement plans that will provide investors exposure to three major cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC). 

The product is available to US citizens over 18 who reside in states where Fidelity Digital Assets supports crypto individual retirement arrangements (IRAs). The asset manager is offering three different IRA plans.

The first plan is a tax-free Roth IRA, which allows investors to save for retirement with already taxed money, while the second is a more “traditional” IRA, which allows for tax-deferred potential earnings growth.

The third plan is a Rollover IRA, which enables investors to transfer funds from a former employer’s plan to an IRA, such as a 401(k), 403(b), or another IRA.

To open a Fidelity Crypto IRA, investors must also hold a Fidelity brokerage IRA with the same registration type, which acts as a funding account. 

Users can transfer funds from the linked brokerage IRA into the crypto IRA to execute trades. If an individual does not already hold a qualifying Fidelity brokerage IRA, the firm will open one in parallel when setting up the crypto IRA.

Additionally, Fidelity’s decision to only include Bitcoin, Ethereum, and Litecoin reflects a focus on established assets with relatively higher market capitalization and liquidity.

No maintenance fees

According to the company, opening and maintaining a Fidelity Crypto IRA, as well as associated custody services for digital assets, will not carry a fee for customers.

However, Fidelity Digital Assets will apply a 1% spread to buy and sell orders. The spread represents the difference between the price a client receives and the price at which Fidelity Digital Assets sources the asset to fill the order.

The offering allows users to retain familiar features of traditional Fidelity retirement accounts, including beneficiary management.

The designated beneficiaries for the Fidelity Crypto IRA mirror those established on the user’s linked brokerage IRA. Customers can make changes to beneficiaries through the brokerage IRA platform.

The move is the latest from Fidelity Digital Assets, Fidelity’s arm that focuses on crypto custody, trading, and management.

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