Charles Schwab’s $655 billion asset management arm is
launching its first crypto-related exchange-traded fund (ETF). The new
fund is expected to start trading this week on the NYSE Arca exchange.
Charles Schwab Launches Its First Crypto-Related ETF
Schwab Asset Management, a subsidiary of The Charles Schwab Corp.,
announced last week the launch of the Schwab Crypto Thematic ETF (NYSE
Arca: STCE), calling the new product “its first crypto-related ETF.”
Charles Schwab is a major American brokerage, banking, and financial
services company. Schwab Asset Management currently has over $655
billion in assets under management, according to its website. It is the
third largest provider of index mutual funds and the fifth largest
provider of exchange-traded funds (ETFs).
The first day of trading for the Schwab Crypto Thematic ETF is
expected to be on or about Aug. 4, the announcement details, adding:
The fund is designed to track Schwab Asset Management’s new proprietary index, the Schwab Crypto Thematic Index.
According to the fund’s prospectus
filed with the U.S. Securities and Exchange Commission (SEC) Friday,
the Schwab Crypto Thematic ETF is “designed to deliver global exposure
to companies that may benefit from the development or utilization of
cryptocurrencies (including bitcoin) and other digital assets, and the
business activities connected to blockchain and other distributed ledger
technology.” Furthermore, “The fund is non-diversified, which means
that it may invest in the securities of relatively few issuers,” the
company warned.
The announcement notes:
The fund will not invest in any cryptocurrency or digital
assets directly. It invests in companies listed in the Schwab Crypto
Thematic Index.
The Schwab Crypto Thematic Index’s constituents as of July 29 include
Microstrategy, Marathon Digital Holdings, Riot Blockchain, Silvergate
Capital, Coinbase Global, Robinhood Markets, Interactive Brokers,
Nvidia, CME Group, Bitfarms, Hut 8 Mining, International Exchange,
Paypal, SBI Holdings, Block Inc., Monex Group, Hive Blockchain, Internet
Initiative Japan, Bakkt Holdings, NCR Corp., and Bancolombia.
David Botset, managing director and head of Equity Product Management and Innovation at Schwab Asset Management, commented:
The Schwab Crypto Thematic ETF seeks to provide access to
the growing global crypto ecosystem along with the benefits of
transparency and low cost that investors and advisors expect from Schwab
ETFs.
Meanwhile, the SEC still has not approved a bitcoin spot ETF despite
approving several bitcoin-futures ETFs. In June, Grayscale Investments,
the world’s largest digital asset manager, filed a lawsuit
against the SEC after the securities regulator rejected its application
to convert its flagship bitcoin trust, GBTC, into a spot bitcoin ETF.
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