How to buy Ethereum ETFs on Fidelity? (Step-by-step guide)

Account Setup and Eligibility Verification

1. Visit the official Fidelity Investments website and navigate to the “Invest” section.

2. Log in to an existing brokerage account or initiate a new account registration if none exists.

3. Complete identity verification, tax documentation (W-9 for U.S. residents), and funding method setup.

4. Confirm eligibility for ETF trading—Fidelity requires accounts to be margin-enabled or at minimum, standard brokerage-enabled.

5. Ensure your account is not restricted from purchasing crypto-related securities; certain retirement accounts may impose limitations on ETF types.

Finding Ethereum ETFs in the Fidelity Platform

1. Use the Fidelity search bar located at the top of the trading interface.

2. Enter ticker symbols such as ETHA, ETHE, or CETH—these represent SEC-approved spot Ethereum ETFs available through Fidelity.

3. Filter results by “ETF” under security type and verify product details including issuer, expense ratio, and underlying asset exposure.

4. Review the fund’s prospectus link provided on the ETF summary page to confirm it holds actual Ethereum reserves rather than futures contracts.

5. Check real-time bid/ask spreads and average daily volume to assess liquidity before proceeding.

Placing the Trade

1. Click “Trade” next to the selected Ethereum ETF to open the order entry window.

2. Select order type: market orders execute immediately at prevailing price; limit orders allow specifying maximum buy price.

3. Enter the number of shares desired—note that fractional share purchases are supported for most ETFs on Fidelity.

4. Choose account destination: taxable brokerage, IRA, or other eligible account type.

5. Review commission structure—Fidelity offers $0 online equity and ETF trades, though regulatory fees (SEC/FINRA) still apply per transaction.

Post-Execution Management

1. Confirm trade execution via the “Activity” tab where settlement date (T+2) and share allocation appear.

2. Monitor holdings in the “Positions” section—Ethereum ETFs appear alongside traditional equities with real-time P&L tracking.

3. Set up price alerts using Fidelity’s notification system to receive updates when the ETF reaches specified thresholds.

4. Access cost basis reporting tools for tax preparation, especially important given IRS classification of ETF gains as capital gains.

5. Review quarterly shareholder reports delivered electronically to understand portfolio composition changes and custodial arrangements.

Frequently Asked Questions

Q: Can I hold Ethereum ETFs in a Fidelity 401(k)?A: No. Most employer-sponsored 401(k) plans do not include Ethereum ETFs in their fund lineup. Only self-directed brokerage windows within select 401(k)s may allow access, subject to plan sponsor approval.

Q: Are Ethereum ETFs held in Fidelity accounts covered by SIPC insurance?A: Yes. Shares are protected up to $500,000 (including $250,000 for cash claims) under SIPC coverage, but this does not cover market value loss or volatility-related depreciation.

Q: Does Fidelity provide custody for the underlying Ethereum backing these ETFs?A: No. Fidelity acts solely as a broker-dealer. Custody resides with third-party institutions like Coinbase Custody or Bank of New York Mellon, as disclosed in each ETF’s statement of additional information.

Q: Can I transfer Ethereum ETF shares from another brokerage to Fidelity?A: Yes. Initiate an ACAT transfer request through Fidelity’s “Move an Account” tool. Allow three to six business days for completion, and ensure the sending firm supports ETF transfers.