Sheeran's total stake in the club is 1.4% and he will not join their board, Ipswich said in a statement on Thursday.
But the artist, who often attends Ipswich's home matches, will have an executive box at the Portman Road Stadium, the club added.
"Really excited to announce that I have bought a small percentage of my hometown football club Ipswich Town," Sheeran, 33, posted on Instagram.
"It’s any football fan's dream to be an owner in the club they support and I feel so grateful for the opportunity.
"I’ve lived in Suffolk since I was three, and although I have travelled the world and sometimes feel like an outsider in big cities, Suffolk and Ipswich have always made me feel part of a community and protected. It’s such a joy to be a fan of Ipswich Town."
Ipswich, who earned an automatic promotion after finishing second in the English Championship last season, begin their Premier League campaign at home against Liverpool on Saturday.
