Is Fidelity SIPC insurance available for cryptocurrency investments?

3 answers

• Nov 24, 2021 · 3 years ago
  Yes, Fidelity does offer SIPC insurance for cryptocurrency investments. SIPC stands for Securities Investor Protection Corporation, which provides limited protection to customers in the event that a brokerage firm fails. However, it's important to note that SIPC insurance does not cover losses due to market fluctuations or investment performance. It primarily protects against the loss of cash and securities held by a customer at a failed brokerage firm. So, while your cryptocurrency investments may be covered by SIPC insurance, the coverage is limited and may not fully protect you from all potential risks.
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• Nov 24, 2021 · 3 years ago
  Unfortunately, SIPC insurance does not cover cryptocurrency investments. SIPC was established to protect customers in the event of a brokerage firm failure, but it does not extend its coverage to digital assets like cryptocurrencies. As cryptocurrencies are not considered securities, they fall outside the scope of SIPC insurance. Therefore, if you're looking for insurance coverage for your cryptocurrency investments, you'll need to explore other options such as specialized cryptocurrency insurance policies or self-insurance strategies.
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• Nov 24, 2021 · 3 years ago
  While Fidelity does offer SIPC insurance for traditional securities, it does not provide SIPC coverage for cryptocurrency investments. However, there are other ways to protect your cryptocurrency investments. One option is to use a reputable cryptocurrency custodian that offers insurance coverage for digital assets. These custodians typically have insurance policies in place to protect against theft, loss, or damage of cryptocurrencies. Additionally, some cryptocurrency exchanges also offer insurance coverage for their customers' digital assets. It's important to research and choose a custodian or exchange that provides adequate insurance coverage and security measures for your cryptocurrency investments.
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