Schwab to List Its First Crypto-Related ETF on NYSE
Nicholas Otieno Jul 30, 2022 07:00
Schwab is launching its first crypto-related ETF to provide its customers with an opportunity to gain crypto exposure by investing in firms that derive revenues indirectly or directly from cryptocurrencies.
Schwab Asset Management, the asset management arm of The Charles Schwab Corporation, an US multinational financial services company based in California, on Friday, announced the launch of its first crypto-related exchange-traded fund (ETF) called the Schwab Crypto Thematic ETF (NYSE Arca: STCE).
The giant asset manager said that the crypto ETF will be listed on New York Stock Exchange Arca as from 4th August.
According to the report, the ETF will trade under the ticker STCE and is designed to track Schwab’s Crypto Thematic Index.
The Schwab’s EFT will not directly invest in or track digital assets, rather it is designed to provide investors with exposure to firms that are investing in or trading cryptocurrency or other digital assets.
David Botset, Managing Director, Head of Equity Product Management and Innovation at Schwab Asset Management, talked about the development: “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. The Schwab Crypto Thematic ETF seeks to provide access to the growing global crypto ecosystem along with the benefits of transparency and low cost that investors and advisors expect from Schwab ETFs.”
As one of the largest providers of ETFs in the United States, Schwab Asset Management has more than a decade of experience managing ETFs and a robust capital markets team that plays a crucial role to ensure the Schwab ETFs function efficiently.
Schwab also has a wide history in indexing. The financial institution launched its first proprietary index, the Schwab 1000 Index®, in 1991.
Why Crypto ETFs Continued Rising
Cryptocurrencies have continued to uphold their reputation despite volatility in recent months. So far, crypto users have more investment options than ever before as the list of cryptocurrency exchange-traded funds (ETFs) continues to expand.
In October 2021, the ProShares Bitcoin Strategy ETF's (BITO) kicked off the launch of a series of new funds coming to market. The SEC had been hesitant to approve Bitcoin ETFs before that.
Schwab has joined a wide list of various financial institutions, including BlackRock, and Fidelity, among others that recently released their crypto-related exchange-traded products.
The increasing launches are driven by huge interest from institutional investors and the ability to trade them in regulated stock markets.
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