Schwab Asset Management Launches Its First Crypto ETF on the NYSE
- The Schwab Crypto Thematic ETF will offer to firms that provide various crypto services such as crypto mining, brokerage, and trading.
The asset management division of the Charles Schwab Corporation (Schwab Asset Management) has announced the launch of its crypto-linked exchange-traded fund (ETF). The listing of the ETF, which is a first for the company, will take place on August 4 through the New York Stock Exchange (NYSE).
According to the company’s official statement, the ETF’s trade ticker will be STCE. It will track the company’s crypto thematic index. Worth noting, that the STCE has a 0.3 percent operating expense ratio annually. Thus, making it the lowest-cost crypto-related ETF currently available in the market.
Schwab and the Crypto ETF Market
In contrast to ETFs that track almost all available digital currencies, Schwab’s crypto ETF will offer investors exposure to firms that can profit from the deployment and development of digital currencies. Such development and deployment of digital assets include crypto trading and brokerage services, crypto mining, and validation of consensus mechanisms.
Others are enabling digital assets to purchase or sell products and services—also, as the distribution and implementation of distributed technology, including blockchain apps and other crypto-related innovations. Notably, Schwab is the latest financial institution to have launched a crypto-related ETF this year. Others include Fidelity and Blackrock.
Head of innovation and equity product management at Schwab, David Botset, said there are vast opportunities for investors seeking to explore crypto exposures.
These opportunities will keep growing as more firms seek ways to enjoy direct and indirect revenues from crypto. Botset added that apart from the low-cost annual operating expense, investors will enjoy the transparency benefits of Schwab products.
Following its acquisition of Motif (a top thematic investor and systematic model), the STCE has the right tool to combine human insight and artificial intelligence.
Schwab Asset Management’s 10-year experience in ETF management makes it the fifth largest ETF provider in the US. It has more than three decades of experience in running index funds – the Schwab 1000 index was its first, and it was launched in 1991.
Also, its capital markets team has all it takes to ensure the efficient functioning of all Schwab ETFs.
Schwab proposed the launch of its crypto-related ETF in Q1 2022. According to the company’s research, its client base has been demanding crypto investment opportunities.
Its retail client sentiment survey conducted earlier in march showed that 20 percent of its clients have made crypto investments between January and march 2022.
Also, 16 percent said they would invest in cryptos before July 2022. The data from the recent survey showed there’d been a 10 percent increase in the number of Schwab’s client base willing to make crypto investments. Before Schwab’s STCE, many of its clients have been utilizing Grayscale Bitcoin Trust (GBTC) and other 3rd-party products to gain exposure to crypto asset investments.
Rebecca is a Senior Staff Writer at BitcoinWisdom, working hard to bring you the latest breaking news in the cryptocurrency market. In the words of Elon Musk “Buy stock in several companies that make products & services that *you* believe in. Only sell if you think their products & services are trending worse. Don’t panic when the market does. This will serve you well in the long-term.”
