Schwab Asset Management, the asset management arm of financial giant Charles Schwab, has launched an exchange-traded fund (ETF) with exposure to cryptocurrency-related businesses.
In an announcement Friday, Schwab said its Crypto Thematic ETF was to be available for trading on the New York Stock Exchange’s Arca under the symbol STCE on August 4. or the use of cryptocurrencies and other digital assets.
Probably because the United States Securities and Exchange Commission, or SEC, has not given the green light to ETFs offering direct exposure to Bitcoin (BTC), the Schwab fund will indirectly invest in crypto through companies. Schwab said the companies include those involved in mining and staking as well as those developing applications on blockchain or distributed ledger technology.
“For investors interested in cryptocurrency exposures, there is a whole ecosystem to consider as more and more companies seek to earn revenue from crypto directly and indirectly,” said David Botset, chief executive of Schwab Asset Management and responsible for equity product management and innovation.
— Charles Schwab Corp (@CharlesSchwab) July 29, 2022
The planned launch of the crypto-linked ETF has followed the company announcing a Crypto Economy ETF in March. According to Schwab, exposure to businesses dealing in cryptocurrencies between the two funds would be similar – while the former would track the firm’s Crypto Theme Index, the latter would invest “at least 80% of its net assets” in companies listed on its Crypto Economy Index.
The The SEC has not approved spot Bitcoin ETFs – those who invest directly in cryptocurrency – in the United States. However, some asset management companies in the United States have launched ETFs offering indirect exposure to crypto through futures, and Canadian regulators first approved a Bitcoin cash ETF from Purpose Investments in February 2021.