Crypto ETF for UTMA/UGMA
Summary:
- The main problem reported by the user is that they, as a beneficiary of a UTMA account, are unable to invest in the FBTC crypto ETF due to an error message indicating their account is not eligible because of the associated risks.
- Only the custodian of the UTMA account can place trades, not the beneficiary.
- The custodian can purchase FBTC by completing two key steps:
- Executing Fidelity’s Designated Investments Agreement (DIA) for complex and risky products.
- Selecting an investment objective of “Most Aggressive” for the account holding the FBTC shares.
Here’s the full thread
Hi. Was wondering if theres any way someone with a UTMA account (i am 16) would be able to invest into the FBTC crypto ETF. So far, I have only ran into error message while trying to buy the ETF, saying my account is not eligible to buy due the amount of risk involved.
Hello i can help you
We appreciate your reaching out, @dahney.
First, beneficiaries are not able to place trades in a UTMA. Only the custodian of the account has this ability.
With that said, the custodian of the UTMA can purchase FBTC. They will be prompted to complete two important steps before placing the order on Fidelity.com.
1. After entering the trade details, they will be asked to execute Fidelity’s Designated Investments Agreement (DIA). We require the DIA on certain complex and risky products. If they agree to the DIA, proceed to the next step.
2. They will be prompted to select the investment objective for the Fidelity account. Fidelity requires the investment objective of the account that will hold the FBTC shares to have an investment objective of “Most Aggressive.” If they agree with that objective, they may then proceed to place the order.
If they have previously executed the DIA, they do not need to complete it again.
Please know, investors do not have different access to information about investment opportunities depending on the status of executing the DIA. The agreement is only presented when the investor goes to place a trade in a security that Fidelity has deemed requires the DIA.
If we can be of assistance in the future, please don’t hesitate to reach out. We’re happy to help where we can. 🟢
Exactly what i was looking for. Thank you.
You’re welcome!