Schwab will launch its first crypto-related ETF on NYSE
Schwab Asset Management, a part of The Charles Schwab Corporation confirmed recently the launch of the Schwab Crypto Thematic ETF.
According to a press statement from the asset management, Schwab Asset Management also stated that its first exchange-traded fund (ETF) tied to cryptocurrencies will start trading on the New York Stock Exchange Arca on August 4.
In contrast to ETFs, which track the performance of a broad portfolio or basket of digital assets, Schwab’s product will give investors with exposure to enterprises that may benefit from the creation and usage of cryptocurrencies and is designed to track Schwab Asset Management’s new proprietary index STCE.
The index neither tracks the prices of cryptocurrencies nor invests in them. Rather, it is designed to provide worldwide exposure to enterprises that may benefit from validating consensus procedures and mining cryptocurrencies, as well as trading and brokerage services for digital assets.
Financial institutions and cryptocurrency ETFs
Several financial institutions, such BlackRock (NYSE: BLK), Fidelity Investments, and now Schwab, have introduced cryptocurrency-related ETFs this year.
Schwab’s head of equities product management and innovation, David Botset, stated: “For investors interested in cryptocurrency risks, there is a whole ecosystem to examine as more businesses seek direct and indirect income from crypto,”
He added: “The Schwab Crypto Thematic ETF aims to give investors and advisers with access to the expanding global crypto ecosystem, as well as the transparency and low costs that investors and advisors have come to expect from Schwab ETFs.”
It’s worth noting that the financial services titan initially announced in March that it will launch its first in-house cryptocurrency product to its 33 million customers, following in the footsteps of BlackRock, Fidelity, and other major corporations.
Finally, the three financial titans Citadel Securities, Fidelity Investments, and Charles Schab Corp reported in June that they are teaming forces to establish crypto offering that would expand access to digital assets and enable “retail brokerages to provide crypto-executions to their clients.”