Charles Schwab will be launching its first crypto fund next week. Several companies have forayed into the crypto funds market this financial year. Schwab’s fund will have lower expense ratios as compared to funds introduced by competitors like Fidelity and BlackRock.
The upcoming crypto fund has been titled the Schwab Crypto Thematic ETF (SCTE). It tracks the United States-based firm’s new proprietary index. These include companies that are developing applications based on the blockchain. It also includes companies that use digital assets to buy or sell their goods or services.
The American firm currently has 27 ETFs trading. These ETFs are in the US and have total assets worth nearly $250 billion, according to reports. They have been wanting to foray into the crypto world with their ETFs from as early as March 2022 when they filed to launch it. Back in January, Charles Schwab CEO Walt Bettinger said that cryptocurrencies are “hard to ignore” and “fairly significant.”
The new crypto fund, SCTE, will start its journey with an annual expense ratio of 30 base points. The firm revealed on Friday (July 29) that the fund will be listed on the New York Stock Exchange (NYSE) on August 4. However, following the US Securities and Exchange Commission’s laws against proposed ETFs holding any physical bitcoin will stop the fund from investing in crypto directly.
Charles Schwab Asset Management’s head of equity product management and innovation, David Botset, said, “For investors who are interested in cryptocurrency exposures, there is a whole ecosystem to consider as more companies seek to derive revenue from crypto directly and indirectly.”
Other crypto ETFs introduced by firms include similar listings from BlackRock. BlackRock is reportedly the world’s largest asset manager. Another worthy mention is Invesco’s Crypto Economy ETF (SATO), which has been around since October 2021. These ETFs have, however, failed to gain significant assets in their lifetime. Their combined holding is roughly $20 million.