This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Bitcoin Investments Allowed in Fidelity IRAs, Then Immediately Yanked

By Hal M. Bundrick

NEW YORK (MainStreet) There was a very small window of opportunity for speculative investors to buy bitcoins as an IRA investment at Fidelity this month, but that window was slammed shut with no explanation. Apparently, only one investor was able to make the trade.

According to Saumya Vaishampayan with MarketWatch, Fidelity had partnered with Secondmarket's Bitcoin Investment Trust to allow wealthy, accredited investors to invest in the digital currency through their self-directed IRAs. It is reported that Chamath Palihapitiya, a member of SecondMarket's board of directors and part owner of the Golden State Warriors, was the only investor allowed to buy into the trust before Fidelity halted further investments.

"According to my family office, I am the first person to have bought BTC thru my Fidelity IRA," Palihapitiya tweeted last Thursday. "Long live tax free compounding!"

Must Read: Do You Suffer From ATM Amnesia?

But Fidelity put a quick halt to the spreading news.

"On an individual basis, we allowed an investor to invest in that Bitcoin Investment Trust," Rob Beauregard, director of public relations at Fidelity, told MarketWatch Thursday. "We are no longer allowing that."

Fidelity offered no further explanation regarding the sudden investment restriction.

The Bitcoin Investment Trust is a private, open-ended trust invested exclusively in bitcoin, requiring a minimum investment of $25,000.

"The BIT was created for accredited investors looking for exposure to bitcoin through an investment vehicle as opposed to a direct investment," Secondmarket's website says. "The BIT solves the challenges of buying, storing and safekeeping bitcoins."

The net asset value of the trust was $12.88 on September 25th, closing at $86.96 on September 12th. The BIT hit a high-water mark of $110.96 on December 4th.

Mt. Gox, a leading bitcoin exchange reports a price of $930 per bitcoin early Friday. The price topped $1,200 earlier this month, notably equaling the value of an ounce of gold.

Self-directed IRAs allow investors to put alternative investments such as real estate, timber, precious metals, promissory notes, foreign currency, tax liens and even private business investments into a tax-advantaged IRA.

--Written by Hal M. Bundrick for MainStreet

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $111.79 0.17%
FB $94.12 -0.15%
GOOG $652.30 0.87%
TSLA $219.25 1.70%
YHOO $32.34 -1.58%


Chart of I:DJI
DOW 17,081.89 -49.97 -0.29%
S&P 500 2,014.89 +15.91 0.80%
NASDAQ 4,796.6090 -42.0340 -0.87%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs