yeschwab Asset Management, the asset management division of financial giant Charles Schwab, has launched an exchange-traded fund (ETF) with exposure to companies linked to cryptocurrencies.
In an announcement on Friday, Schwab said its Crypto Thematic ETF was expected to be available for trading on the Ark of the New York Stock Exchange under the ticker STCE on August 4. The fund tracks the Schwab Crypto Thematic Index, providing an investment vehicle with exposure to companies “that can benefit from the development or utilization 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 that provide direct exposure to Bitcoin (BTC), the Schwab fund will indirectly invest in crypto through companies. Schwab said the firms included those involved in mining and staking, as well as those developing applications on top of distributed ledger or blockchain technology.
“For investors who are interested in cryptocurrency exposures, there is an entire ecosystem to consider as more companies look to earn income from cryptocurrencies directly and indirectly,” said David Botset, managing director and head of equity product management and innovation at Schwab Asset Management.
Schwab Launches Its First Crypto-related ETF—the Schwab Crypto Thematic ETF https://t.co/iVkCYdNUQw pic.twitter.com/18rJUZ3phy
— Charles Schwab Corp (@CharlesSchwab) July 29, 2022
Schwab Launches Its First Crypto-Related ETF: The Schwab Cryptocurrency-Themed ETF
The early launch of the cryptocurrency-linked ETF came after the firm announced a Crypto Economy ETF in March. According to Schwab, exposure to companies trading cryptocurrencies between the two funds would be similar: while the former would track the company’s cryptocurrency-themed index, the latter would invest “at least 80% of its net assets” in companies listed on its Crypto Economy Index.
The SEC has not approved spot Bitcoin ETFs — those that invest directly in the cryptocurrency — in the United States. Nevertheless, Some asset management firms in the United States have launched ETFs that offer indirect exposure to cryptocurrency through futures contracts, and Canadian regulators first approved a Purpose Investments Bitcoin spot ETF in February 2021.
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