Charles Schwab’s wealth management arm launches crypto-pegged ETF

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Schwab Asset Management, the asset management arm of financial giant Charles Schwab, has launched an exchange-traded fund (ETF) with exposure to companies linked to cryptocurrencies.

In a Friday announcement, Schwab said its Crypto Thematic ETF was expected to be available for trading on Aug. 4 on the Arca of the New York Stock Exchange under the ticker STCE. “who can benefit from the development or use of cryptocurrencies and other digital assets.”

Probably because the US Securities and Exchange Commission, or SEC, has not given the green light to ETFs that offer direct exposure to Bitcoin (BTC), the Schwab fund will invest in crypto indirectly through companies. Schwab said the companies include those involved in mining and staking as well as those developing applications on the blockchain or distributed ledger technology.

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“For investors interested in cryptocurrency exposure, there is a whole ecosystem to consider as more companies look to monetize crypto directly and indirectly,” said David Botset, director of Schwab Asset Management and head of equity product management and innovation.

The expected launch of the crypto-pegged ETF followed the announcement of a Crypto Economy ETF in March. According to Schwab, exposure to companies trading cryptocurrencies would be similar between the two funds – while the former would track the company’s Crypto Thematic Index, the latter would invest “at least 80% of its net assets” in companies trading on its Crypto are listed. Economy Index.

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Related: Grayscale Reports 99% of SEC Comment Letters Support Spot Bitcoin ETF

The SEC has not approved spot Bitcoin ETFs in the United States – those that invest directly in the cryptocurrency. However, some asset managers in the US have launched ETFs that provide indirect exposure to crypto through futures contracts, and Canadian regulators first approved a Bitcoin spot ETF from Purpose Investments in February 2021.

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