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Charles Schwab’s investment arm to launch crypto-themed ETF in the US

crypto ETF

Schwab Asset Management, which has over $655 billion in assets under management, is set to launch its first crypto-themed exchange-traded fund (ETF) in the US.

According to the prospectus filed with the US Securities and Exchange Commission on July 29, 2022, the ETF will have the ticker symbol “STCE.” The ETF is expected to start trading on the New York Stock Exchange around August 4.

ETF will invest in firms that have investments in crypto

The new ETF will not invest directly in crypto assets. Instead, it will have exposure to the crypto ecosystem by investing in companies that use digital assets as part of their business activities or have exposure to cryptos in the form of investments.

The ETF will have exposure to companies such as MicroStrategy, Marathon Digital Holdings, SBI Holdings, CME Group, Nvidia, Paypal, Interactive Brokers, Hut 8 Mining, Coinbase Global, Silvergate Capital, and Hive Blockchain. The ETF fund will invest up to 20% of its net assets in non-listed securities.

Low-cost ETF

Charles Schwab claims this is the lowest-cost crypto-themed ETF currently available to investors with an operating expense of 0.30%.

Interestingly, the launch marks a change in stance for Charles Schwab chief executive Walt Bettinger who had his doubts about cryptos initially. In fact, Bettinger’s reference to cryptos as hard-to-ignore assets in January 2022 signaled a different line of thinking.

FAQs

Does Schwab have a cryptocurrency fund?

Yes, Charles Schwab offers the Schwab Crypto Thematic ETF (STCE), designed to provide exposure to companies that may benefit from the development or utilization of cryptocurrencies. The ETF aims to track the total return of the Schwab Crypto Thematic Index. It allows investors to gain global exposure to firms involved in the cryptocurrency space. The fund holds a variety of cryptocurrency-related holdings, including companies such as Marathon Digital Holdings Inc.

Does Charles Schwab have an ETF?

Yes, Charles Schwab offers a wide selection of Exchange-Traded Funds (ETFs) with some of the lowest costs. Investors have access to a variety of ETF options, including low-cost Schwab ETFs that can serve as the foundation of their portfolio. Additionally, Schwab provides a broad selection of ETFs, giving investors the flexibility to diversify their portfolios according to their investment goals.

What does Charles Schwab do?

The Charles Schwab Corporation is an American multinational financial services company that provides a full range of brokerage, banking, and financial advisory services. The company is engaged in wealth management, securities brokerage, banking, and asset management. Charles Schwab offers a variety of services, including investment solutions, commercial banking, and financial advisory services through its operating subsidiaries. It operates as a savings and loan holding company, delivering comprehensive financial services to individuals and institutions. Charles Schwab is known for its brokerage services, wealth management, and a broad range of investment products.

What are ETFs in investing?

Exchange-Traded Funds (ETFs) are a type of investment fund and exchange-traded product that combines features of both stocks and mutual funds. ETFs are designed to track the performance of a specific index, commodity, bond, or a basket of assets. These funds are traded on stock exchanges, providing investors with the flexibility to buy and sell throughout the trading day at market prices.
Key features of ETFs include diversification, liquidity, and transparency. They offer investors exposure to a broad range of assets without having to buy individual securities. ETFs can represent various asset classes, including equities, bonds, commodities, and more.

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