Charles Schwab’s $655 billion asset management arm is launching its first crypto-related exchange-traded fund (ETF). The new fund is expected to begin 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 the launch of the Schwab Crypto Thematic ETF (NYSE Arca: STCE) last week, 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 more than $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 take place on or around August 4, according to the details of the announcement, adding:
The fund is designed to track Schwab Asset Management’s new proprietary index, the Schwab Crypto Thematic Index.
Depending on funds prospectus filed with the U.S. Securities and Exchange Commission (SEC) on Friday, the Schwab Crypto Thematic ETF is “designed to provide global exposure to companies that stand to benefit from the development or use of cryptocurrencies (including the bitcoin) and other digital assets, and business activities connected to blockchain and other distributed ledger technologies. securities of a relatively small number of issuers,” the company warned.
The ad notes:
The fund will not invest directly in cryptocurrencies or digital assets. It invests in companies listed on the Schwab Crypto Thematic Index.
Constituents of the Schwab Crypto Thematic Index 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, said:
The Schwab Crypto Thematic ETF aims to provide access to the growing global crypto ecosystem along with the transparency and low-cost benefits that investors and advisors expect from Schwab ETFs.
Meanwhile, the SEC has still not approved a bitcoin spot ETF despite the approval of several bitcoin futures ETFs. In June, Grayscale Investments, the world’s largest digital asset manager, filed a complaint against the SEC after the securities regulator rejected its request to convert its flagship bitcoin trust, GBTC, into a spot bitcoin ETF.
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