Bitcoin in an IRA.
Spot ETF, Bitcoin IRA, or Solo 401(k) self-custody.

Section 1 · Spot ETF in a standard Roth IRA

The simplest path. Open a Roth IRA at Fidelity, Schwab, or any major brokerage. Buy IBIT (iShares Bitcoin Trust), FBTC (Fidelity Wise Origin Bitcoin Fund), or ARKB verify×DON'T TRUST, VERIFYClaim: Spot Bitcoin ETFs (IBIT, FBTC, ARKB, BITB, etc.) are SEC-approved and held in standard brokerage accounts.Verify at: SEC EDGAR ↗ Source 1 in the list belowSpot Bitcoin ETFs were approved in January 2024. Verify current expense ratios at each issuer's site..

What you give up

• Not your keys. The ETF holds the Bitcoin through a custodian (Coinbase Custody for IBIT and several others).
• ETF expense ratioExpense ratioThe yearly fee a mutual fund or ETF charges, stated as a percentage of your investment and taken out of the fund's assets instead of billed to you. A 0.03% ratio costs $3 a year per $10,000 invested; a 1% ratio costs $100. Lower is better.Full definition: approximately 0.12 to 0.25% per year.
• Counterparty risk: the ETF sponsor and their custodian.

What you gain

• Tax-free compounding in a Roth.
• No seed-phrase management.
• SIPCSecurities Investor Protection Corporation (SIPC)When a member brokerage firm fails and customer assets are missing, most customers are protected up to $500,000, including $250,000 for cash. It does not cover a drop in a fund's value or any other market loss, and money market mutual funds count as securities, not cash. protection on the brokerage account (on your claim against the brokerage, not on Bitcoin price).

For most people who want Bitcoin in their retirement accounts, this is the right answer. See Spot Bitcoin ETFs: The Roth IRA Play.

Section 2 · Bitcoin IRA custodians (Self-Directed IRAs)

Several specialized custodians offer self-directed IRAs (SDIRAs) that hold actual Bitcoin, not ETF shares.

Major custodians

• Unchained: multisig collaborative custody, IRA offering.
• Swan Bitcoin: IRA offering, with the Bitcoin held at a qualified custodian (Equity Trust).
• iTrustCapital: larger, more account types.
• IRA Financial Group: checkbook IRA specialist.

The trade-offs

• Fees: setup fees often $200-500. Annual custody often $250-500+. Transaction fees often 1-2% per purchase. On a $10,000 balance, these fees are significant relative to a spot ETF at 0.25%.
• Custody: you hold actual BTCBitcoin (BTC)The ticker symbol for Bitcoin, used on exchanges and in price quotes.Full definition, not ETF shares. The custodian holds all or some of the keys. Still not self-custodied.
• Regulatory status: SDIRAs are legitimate, but verify any specific custodian is IRS-compliant verify×DON'T TRUST, VERIFYClaim: Self-Directed IRAs holding alternative assets (including Bitcoin) are permitted under IRS rules but require qualified custodians.Verify at: IRS IRA guidance ↗ Source 2 in the list belowSDIRAs themselves are valid; quality of the custodian and prohibited-transaction compliance matter most..

Section 3 · Solo 401(k) self-custody

The most advanced and most sovereign option. A solo 401(k) is a retirement plan for self-employed individuals with no employees other than a spouse. See Solo 401(k): The Self-Employed Power Account.

The self-custody pathway

1. Set up a solo 401(k) through a provider that allows "checkbook control," where the plan's trust has its own bank account that you control as trustee.
2. Use that account to purchase Bitcoin directly.
3. Hold the Bitcoin in self-custody (hardware wallet owned by the plan).

The result: you are the trustee of your own retirement plan. The plan holds Bitcoin in self-custody. The Bitcoin grows tax-deferred (Traditional) or tax-free (Roth solo 401(k)). You hold the actual keys.

Risks and complexity

• IRS prohibited-transaction rules are strict. A violation triggers a 15% excise tax on the amount involved for each year, and 100% if it is not corrected verify×DON'T TRUST, VERIFYClaim: IRC 4975 taxes a prohibited transaction in a qualified plan such as a solo 401(k) at 15% of the amount involved for each year, plus 100% if it is not corrected.Verify at: IRS prohibited-transactions guidance ↗ Source 3 in the list belowPlan cannot transact with you personally. Plan Bitcoin cannot be mixed with personal Bitcoin. The hardware wallet must be clearly for the plan..
• Requires meticulous record-keeping.
• Not for people who want simplicity.
• Requires self-employment income.

The rules to know

• The plan cannot transact with you personally (no lending from plan to yourself outside a compliant plan loan).
• The plan Bitcoin cannot be mixed with your personal Bitcoin.
• The hardware wallet holding plan Bitcoin must be clearly designated for the plan.

IRA Financial Group and Broad Financial are among the providers that facilitate this approach. This setup requires a CPA or specialized provider to do correctly.