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Unless it's FBTC - that's at Fidelity.
Why does this same stupid question keep popping up. You're going to take a 1.7K penalty and pay at least another 1.7K in taxes. So you will get 14K back maximum. Just purchase IBIT or FBTC with the full 17K. Transfer the money to fidelity, schwab, etc.
Nfa.. you’re young… Keep the 401k/company match. (10% is outstanding) Get some bitcoin expose through FBTC or iBIT, and check into a % off your paycheck automatically withdrawn/sent to bitcoinwell or another platform that will automatically send it to your wallet. And..May the wind be at your back 🤙 Ten years till financially free. Potentially. With good money management. Just a dummy’s opinion
I'm in the same situation, but with 20 years worth of assets in my 401K. It's big loss to pay the tax and penalty, especially if you're in a high income tax bracket. Look into if your 410K allows rollovers to an IRA. You can do that with no tax and no penalty. Use Fidelity Crypto IRA. You can buy actual bitcoin there, in a tax deferred IRA. They have also said recently that they will soon allow private custody of that bitcoin. Another option is a regular Fidelity IRA and buy their bitcoin ETF, FBTC. If you're forced to stay in the 401K, use that as a tax deferred investment vehicle and buy spot bitcoin on the side. Most people with lots of money have multiple investment vehicles. Very few people with significant assets have it all in one thing.
I bought 25 Oct 31 FBTC 105 calls near the bottom…. Monday is gonna be incredible if this rally holds
Use FBTC, it will allow you to get 2x BTC
Did anyone who owns FBTC, IBIT, or any Bitcoin ETF try to trade during the crash and did the orders go through? I’m just curious if institutional Money was able to execute trades
tldr; US spot Bitcoin ETFs saw $2.71 billion in weekly inflows during 'Uptober,' with total assets under management reaching $158.96 billion, nearly 7% of Bitcoin's market cap. Monday marked the second-largest single-day inflow at $1.21 billion. BlackRock's IBIT led with $74.2 million in daily inflows, while Fidelity's FBTC and Grayscale's GBTC saw outflows. Analysts view the surge in ETF applications as a potential opening of the 'floodgates' for crypto ETFs, with nearly 100 crypto-related products awaiting SEC decisions. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.
My Roth IRA is at Vanguard and it turns out that they do not offer access to ANY bitcoin ETFs… I thought that was interesting but anyway did buy some FBTC in a taxable account.
Try self-custody at least. Maybe just a portion of your funds. You might find out that it's not as bad as you thought, and it'll broaden your understanding of Bitcoin. If you still really don't want to do self-custody after that, then go with an ETF (preferrably FBTC). Unless you're looking to trade frequently, there's no reason to hold on an exchange when you could be holding units of an ETF in a tax-sheltered account.
I’ll probably get downvoted but if you’re new and want exposure you can just get Blackrock or Fidelity’s spot ETFs. I use Fidelity and dollar cost average FBTC and FETH into my Roth IRA. The ETFs will give you exposure while you learn more about exchanges and self custody. Also, don’t get sucked into the hype with meme coins. Just focus on the big names like BTC and Ethereum.
FBTC is easy and Fidelity is a rock solid institution around for decades through many crashes. I agree.
I’d do FBTC instead. That’s what I’m doing and much prefer Fidelity over Blackrocks’s IBIT.
FBTC over IBIT. But both are solid options for a roth 401k or roth ira, outside of that it is still a good idea to obtain as much self custody as possible
I got fired for ten days and took full advantage to move as much as I could out of my 401k into an IRA (direct transfer rollover) then bought 100% FBTC. It has worked well. Try getting fired. But not so fired that you can’t get back to work.
I think this might be an unpopular opinion, but for me, it'd be through a traditional brokerage with a bitcoin ETF like FBTC, I dont trust myself enough with cold storage and I trust institutional brokerage house more than coinbase or whatever.
FBTC > IBIT. Fidelity holds their own btc, IBIT uses Coinbase.
The truth is I own some BTC, but I can't explain it to someone else. Frankly, it does sound crazy. I never understood NFTs. In 2026, I'll open a ROTH IRA and buy FBTC. Already have 2 IRAs.
If it is Vanguard, they won’t let you buy ANY crypto ETF, although apparently if an ETF has a percentage of allocation going to a BTC fund they may allow it but IBIT and FBTC for example are a no-go.
tldr; Spot Bitcoin ETFs in the U.S. recorded over $3 billion in net inflows last week, driving Bitcoin (BTC) to a new all-time high above $125,500. BlackRock’s IBIT led with $1.8 billion in inflows, followed by Fidelity’s FBTC with $691.9 million. Ethereum ETFs also saw $1.3 billion in inflows. The surge reflects growing institutional and retail interest in regulated crypto investments, coinciding with October's historically bullish trend for cryptocurrencies, often referred to as 'Uptober.' *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.
I was where you're at during the last cycle, I missed the dip, rode the euphoria, rode the crash and really had to stick to my convictions and just turn off the noise until the next cycle. The emotions can be a lot so be ready for that roller coaster. If you're worried about IBIT collapsing, there are other ETFs that you can "diversify" your bitcoin ETF exposure to such as FBTC, ARKB, HODL, BITB, BITO, etc. I would also suggest investing in the real thing. It doesn't have to be significant; it could be $50, but going through the exercise now will teach you a lot and help ease that anxiety.
Monday morning - open a ROTH IRA (possibly with iShares) and deposit $7,000 (the max at your age) buy BTC or BTC ETFs (FBTC or IBIT) and in January invest another $7,000 (again the max at your age) buy more BTC- your ROTH IRA will grow 100% tax free and your 60 year old self millionaire will be very happy with what you did now. Use the rest of your money to open your own business. Nothing better than owning your own business. BUT THE MOST IMPORTANT ADVICE is get out of debt and stay out of debt. Debt is the worst situation you can find yourself in. I am an old Baby Boomer.
I was about to enter a FBTC ETF on Friday after years of avoiding crypto. The cash transfer to brokerage did not land in time, delayed to Monday 😅😅😂
That’s correct, taxes only occur on sold Bitcoin. I have both BTC and ETFs (IBIT & FBTC), I prefer to borrow against my ETFs rather than selling BTC to avoid taxable events.
I just buy when I get paid. I buy 250 or so of FBTC etf with my HSA then whatever is left of the paycheck after funding bill pay account into actual BTC. I work overtime a lot, so it varies.
I’ve asked this before, but why is IBIT the popular choice when ARKB has a lower expense ratio? Have my bitcoin split evenly between ARKB and FBTC due to the self custody.
You don’t understand how theta works it would seem, resetting at a high to 24 month+ leaps on FBTC gives me the ability to own a full coin for less than $35,000
So once it hits 145, drop all my options on FBTC and reset them all to 24 month leaps. Got it.
If you are just starting out you could try a small amount in a Bitcoin ETF like FBTC or IBIT in your Brokerage or Retirement account to dip your toes in the water; ETFs are like investing in stock so if you are familiar with that it will be easy. Then do your own research and see if want to start self custody BTC purchases into a cold wallet, if that interests you.
I buy Bitcoin at Wealth Simple Crypto and I also buy two ETF BTCC and FBTC to 33% each spread the risk
Create WealthSimple account. Buy FBTC in your TFSA.
I switched brokers and sold my FBTC yesterday 😫😭😭. My new broker account isn't open yet and I'm gonna miss this wtf
You don’t need a course. You can buy pure bitcoin on one of the reputable exchanges (Kraken, Strike, River, Gemini; there are many others). Upload ID and a means of payment (bank account #, PayPal, wire, other) and buy some. It’s that simple. Eventually learn how to put the bitcoin in cold storage (Trezor has many easy to understand YouTube’s) but you don’t need to do that today. Think about it when you get to 0.01 bitcoin ($1,000 US) or higher. If you really want to hit the easy button, buy an ETF through Fidelity (FBTC) or Blackrock (iBIT). In USA these can be either in retirement accounts or not (check if available in Canada or if there is a Canadian version). It’s not the purest way of doing it, but you’ll see the same gains bitcoin will (minus a tiny fee). Read one of these two books so you know why bitcoin is a smart investment: -The Bitcoin Standard (Ammous) or -Broken Money (Alden). Both are stone cold classics. You need to know more than simply, “Number goes up.” Listen to podcasts involving people like Saifedean Ammous, Lyn Alden, Lawrence Lepard, Michael Saylor. Avoid anything having to do with sh¡tcoins (any crypto currency other than bitcoin).
Agreed. I keep FBTC in my Roth IRA. I've just started buying small amounts of BTC for a hard wallet
Thanks for the info. I’ll have to look into this. I did not realize they had more than FBTC.
I can and I'm not restricted on the amount but I can only do a rollover once a year which is the problem. So there's no way to DCA into Bitcoin then. So instead I fund my IRA simultaneously and DCA funds into IBIT and FBTC within it. I just wish I had access to Bitcoin right in my 401k but no such luck and I don't see it coming anytime soon
401k? Nice. I have FBTC in my IRA. No 401 options yet for me. And to OP. I’m about 75% BTC.
Bid ask spreads narrow substantially as more liquidity is injected into the equation. You are correct that the underlying fundamentals are still there: still a deflationary asset. My mind wanders to when full synthetic positions with a direct derivative are made available rather than indirectly through the etfs like FBTC. When will we get btc-usd swaps.
Awesome and congrats. My 17 year old daughter recently asked to buy some also, she did (custodial FBTC until 18 then raw coins). She also wanted to put some in a money market and S&P 500 index fund. At the end of 1 year we’ll look back and see which performed best.
More, even if BTC reaches whatever level that whatever fund company, who *just so happens* to also sell ETF’s that invest in BTC (FBTC), it won’t be a straight line up. Lots of fear and greed in between now and whatever it gets to.
tldr; Bitcoin ETFs in the U.S. ended a four-week inflow streak, recording $902.5 million in net outflows amid investor concerns over new Trump tariffs and uncertainty about Federal Reserve rate cuts. Fidelity’s FBTC saw the largest outflows, while BlackRock’s IBIT posted inflows. Ethereum ETFs also faced significant outflows. Despite recent redemptions, September remains strong for Bitcoin funds with $2.57 billion in inflows. Bitcoin's price action shows a bullish reversal pattern but struggles to reclaim key support levels. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.
Depending on where you live you can contribute to a crypto Roth. Otherwise you can buy a fund like FBTC in a Roth IRA
I have FBTC in my Roth. That’s the best ETF imo because they custody their own BTC and don’t rely on Coinbase.
Fidelity/FBTC is ideal for most people. I trust their custody more than I trust myself. Look at all of the people who have totally effed up self custody and either lost access or had their bitcoin stolen. With FBTC, I can sell at any time and buy BTC directly if I want to. The 3 huge benefits are 1) i can easily borrow against my holdings if they are in a margin enabled account; 2) if you keep your bitcoin offchain...when you try to sell it in the future you may incur serious issues, whether KYC, tax, or like many have experienced with coinbase....being notified your account is being suspended and losing access to your coin or your money, sometimes for months. When BTC goes much higher than today, expect to see more issues like this; and 3) Fidelity is about the most reputable financial institution out there. I trust them far more than any crypto exchange, meaning i won't get fucked when I sell. Just IMO. But so many people have fucked up self custody in such a huge way and have lost their coin altogether. The .25% is a small price to pay for peace of mind.
I’m sorry if it’s a dumb question, but what are back door conversions? I hold FBTC as well.
Some advantages 1. Easier to hold in a brokerage account or IRA 2. Easier for estates to deal with 3. No chance of a "I forgot my password" incident FBTC is redeemable for BTC but only for very large participants, but this is enough to keep the price stable to BTC.
> is your money not covered up to $250,000 under the FBTC stock? No. If you read the prospectus, it says pretty clearly that if Fidelity gets hacked or otherwise loses their keys, you lose everything. Maybe you're thinking about SIPC insurance or something? That's in the event that the brokerage fails.
The recent AMA with FBTC on r/BitcoinCA reduced my confidence level from skeptical to none at all. Redemption will be for brokers, not for individuals. No understanding of nodes or self custody and quite clear that users will be fucked in the event of a fork.
Something like FBTC would work for her concerns. But she will own an etf, not bitcoin. Having said that, it may be risky for her at her age. Is she willing to buy and hold for 10 years? Does she have that time?
no but there is a fidelity customer service department. is your money not covered up to $250,000 under the FBTC stock?
I can't open a Roth IRA until 2026; already maxed out this year. Plan to buy FBTC and see what happens.
Yes, It is a good idea to max out your registered accounts. I have a lot of FBTC in my TFSA. Also good to have some in a hand - ie a hardware wallet.
Use FBTC and FETH in a place like Fidelity. Set to automatic weekly buys. Set and forget. You should be prepared for very high volatility. Sell only when you have something urgent to pay for. Be ready to wait 4 years between when urgent things can be paid. Sp500 is easier emotionally. But the premise is the same. Set to automatic, don’t rely on self discipline, sell only when you have something urgent to pay for. Good luck!
I chose to open a UTMA and 529 for each kid. I did buy them some IBIT and FBTC within the UTMAs when it came out. I realize capital gains in each UTMA up to $1350 (2025) because you don't have to file anything with the IRS. I opened the 529s not really for school but, to convert to a ROTH IRA later on. Because let's be honest, what 18 yr old has 7k to max out a ROTH. If you're buying BTC and staking it in cold storage you can pretend it's your kids but, it's really not. And you're not going to be able to give it to the kid in a lump sum if it's over the gift tax value. At least in a single year unless you want to pay a lot of taxes. Look up your states guidelines for a UTMA or UGMA. I'm in TX so they get it at 21. Thats another reason I opened the 529s because 21 is a little young for too much access to a large amount of money. Idk hopefully I can raise them right and they just use it as a brokerage account. But they will probably blow it and learn that lesson the hard way when they have their own kids. I chose the New Hampshire 529s and put the bulk in NHFSMKX98 which is the S&P and NHXINT906 which is international ex US. The UTMAs are mostly ITOT, SPDW, FTEC, QQQM, and BTC. I sell and immediately buy back to realize the gains. Not trying to time the market just save on taxes. Anyways that's what I did, you do you.
Both... FBTC for Roth IRA. Cold wallet for BTC
Plenty to read on this topic out there. Personally I think both have their place - I have FBTC in my Roth IRA, and direct coin bought on my own. Most places have diminishing fees once you break certain thresholds, or reduced/no fees if you DCA regularly. For me it's long term savings. The tax advantages of FBTC in my Roth IRA cannot be ignored, and the benefits of having my own keys for direct bitcoin are also significant. You have to decide for yourself your risk vs convenience tolerance with your chosen path. The famous words of not your keys, not your coins, comes to mind.
I just tried to buy IBIT, but it’s saying buy orders aren’t an option for this security currently due to a number of variables.. same with FBTC. Would you know why? It shows as if I can still buy it but then has that message
IBIT, FBTC, and other Bitcoin ETFs. You can also rollover to a crypto IRA to buy actual Bitcoin. Fidelity offers them but they charge a 1% spread and its not self-custody (which arguably makes it not actual Bitcoin). All crypto is held with Fidelity Digital Assets. But then again, Bitcoin ETFs are not self-custody either.
Fidelity’s FBTC and Blackrock’s iBIT are two that come to mind
As someone who doesn’t want to keep it either on wallet or intermediate platforms; is it alright to just get BC ETFs like FBTC?
FBTC holds its own bitcoin. IBIT does not. One smaller fund out of 15 does not invalidate the paper-bitcoin story.
Nonsense - have you actually read the FBTC fact sheet? Before buying a bitcoin etf people should scan the details to ensure the etf is directly buying bitcoin. [https://www.fidelity.ca/content/dam/fidelity/en/documents/etf/fact-sheet-fbtc-en.pdf](https://www.fidelity.ca/content/dam/fidelity/en/documents/etf/fact-sheet-fbtc-en.pdf)
A lot of us have money trapped in 401Ks and Roths. We can still choose what to invest in, though. I've made a killing with BTC and ETH through FBTC, FETH, and recently, BMNR.
Don't skip on the IRA, 401K, and HSA. These go a long way to lower your taxable income. Just buy FBTC in them. Max out the IRA and HSA and contribute to the 401K only up to what your employer will match. For any additional money that you have, buy Bitcoin and put it in cold storage.
ETF long term would not be ideal imo. The current expense ratio is 0.25%, now if someone buys $100,000 of FBTC for example, the yearly fee for that is $250 yearly. Not bad right? BUT if you plan to hold long term, after 30 years for example, that $250 is looking more like $7,500. BUT obviously it will be more because the price of BTC is expected to go up right?
Buy GBTC or FBTC, both safer and easier option than keeping and maintaining your own wallet.
I have FBTC through my bank TD. How do I do this?
I don’t think it entirely defeats the purpose. I’m still invested in something I believe will grow long term. I do have cold storage, but there’s prob a higher chance I lose my seed phrases or they get compromised than there is that fidelity losses their custody. I view FBTC as somewhat hedging against my cold storage being compromised.
On the up trend? Probably not. 50% on a Bitcoin and 50% on a high yield volatility harvester and then direct yields into Bitcoin, maybe. Or drop the 120k into FBTC (the only etf that self custodies) and take out a margin loan and drop it on a volatility harvester. Depends on risk, risk tolerance, and time horizon. If the 120k was a gift or inheritance (and therefore not coming from my labor) then yes I'd probably put it in Bitcoin.
I'm saying if you use your bitcoinETF as Leverage, the value of your loan is impacted by the value of the underlying asset, thus if Bitcoin increase in value, your margin increase at the same time. Since interest is billed on the loan itself, the loan juste keep getting bigger. I have 1 bitcoin in ETF, say FBTC. It's Margin Requierement is 50%, which guys you back 50% of it's value in Margin loan. You spend all of it(50k) over the next year, but bitcoin double at the same time. So after one year, you margin limit is now 100k and you have used 50k + interest. Rince and repeat.
You’ll hate this but I use FBTC and you can use margin from fidelity to spend
Why not just buy FBTC in your IRA. Buy Bitcoin with "new" dollars from wages over time. Paying taxes and penalties is a good way to piss away wealth.
Yes ETF FBTC wins out over the long run easily. The longer the more advantageous and I can't remember exactly which year it surpassed Fidelity Roth crypto but I want to say it was only 5 or 7 years out.
This is so interesting. I was trying to understand it all. Are you saying that the etf FBTC came out more advantageous than the Fidelity Roth Crypto? I went for the Fidelity Roth Crypto but am wondering if I made the right decision vs the FBTC.
FBTC in any retirement or custodial accounts. BTC direct purchases for everything else.
Don't believe the hype about "not your keys not your cheese". Here's why: When somebody buys a share of an ETF through Vanguard, Schwab, etc, as an example, that person becomes a shareholder with full legal ownership of a portion of the fund's assets. That ownership is protected by regulations, most critically, a separation of the fund's assets from the managing company. Those same protections apply to owning FBTC, which fidelity backs 1:1 with actual bitcoin they hold to back your funds. Massive investment institutions aren't some fly by night alley scammer "oops, we stole your bitcoin and deleted your ETF shares". People lose bitcoin all the time via forgotten passwords, scammers, etc. I will challenge anybody to assemble a list of incidences where people with IBIT or FBTC have lost control of their assets. It doesn't happen. Could there be a scenario one day where random institutions just say "oh we sold your apple stock you can't do shit, not your stock not your cheese" but we're talking about complete breakdown of law and economic system, in which case your best investment is actual cheese. And shotgun shells.
If their primary concern is investment returns, ETFs are cheaper. FBTC fee is .25% per year. Compare that with the fees charged by your choice of exchange / purchase / transfer process. Be careful, they add up.
If you seek a way to leave Bitcoin as an inheritance, the easiest way, not necessarily the best way, is to buy ETFs like IBIT or FBTC. Don’t forget an up to date will. That said, perhaps start your own journey looking into self custody of Bitcoin at some smaller amount. When you have gained confidence and understanding, pass that knowledge onto your daughter. Get her started holding Bitcoin. Then you could better leave her an inheritance based on Bitcoin. Just the fact that you have to ask here leaves me thinking you should start with ETFs if Bitcoin is your desire.
I'm on the purist side of the spectrum My hot take is that "pure" ETFs such as FBTC do count, but Bitcoin sitting on an exchange such as Coinbase/Binance/Kraken does not.
My 401k is 100% FBTC. You haven’t heard of the company I work at though, it’s small.
Log in and see if you can buy FBTC or IBTC.
Do Both. Utilize tax advantage accounts (IBIT or FBTC in Roth). Then buy real BTC as well, where you can hold in self custody. Don't under estimate tax free gains in a Roth.
Same thing happened to me years ago. They claimed it was fraud but someone got into my account and cleared it out. Was never able to get a person on the phone. Will never trust coinbase. Buy FBTC or use gemini
I use as many of the tax advantaged options as possible. although you may want to split the holdings between FBTC, IBIT and the Van Eck ETF so you have diversified custodial risk. I haven’t done it yet but also going to look into the Fidelity Crypto IRA options. But yea I own the Bitcoin ETFs in my HSA, Roth IRA, Traditional IRA and Solo 401k. Once you get to a certain level of wealth in Bitcoin. Self custodying everything is kinda crazy. Lots of potential failure points that could completely whipe you out or the ones you wish to inherit the Bitty.
I am trying to understand the "not your keys not your cheese". I own a tiny amount of BTC in a ledger and I also own FBTC. (I used to have ALL in ledger) But I need help: I don't think I'm sharp enough to get how one is better than the other. I'm old, go slow. lol When somebody buys a share of something from Vanguard as an example, say VOO, that person becomes a shareholder with legal ownership of a portion of the fund's assets. That ownership is protected by regulations, most critically, a separation of the fund's assets from the managing company. Those same protections apply to owning FBTC, as an example. Question: What scenario would cause those protections to fail? Even if vanguard itself goes tits up, there is a separation of funding by law. Investors would be made whole. The only way I could imagine that my country (US) would allow or cause VANGUARD (and others) to completely be obliterated is basically a complete disintegration of the economic system and rule of law. In which case, wealth is measured in your ability to bond and survive with your neighbors and take turns guarding the block with shotguns from looters. Man I need to watch road warrior now. thanks for any thoughts.
I just found this, opened one and then converted all my FBTC to BTC. So happy to have the actual BTC, even if it has to stay stored on their platform.
Same. The tax benefits are the best. Also consider an IRA from Unchained, for example, that allows you to hold your own keys. Rather than a brokerage IRA with FBTC. There are pros/cons of both for you and your heirs.
Max your Roth and buy FBTC with it. Then buy bitcoin
I’ll play devil’s advocate: the tax free growth is not taxed but I don’t want to buy stocks so I’d buy a BTC etf like FBTC or IBIT. But I worry that the government could confiscate it like they did to gold once before (and other countries have had similar issues such as Cypress not that long ago). If I put the same amount of money into BTC via a cold wallet, perhaps I could take out a loan against the BTC in the future; there’s interest but no taxes on a loan. Thoughts?