Charles Schwab, a Giant in the Financial Services Industry, Will Launch an ETF for Cryptocurrencies.
An additional large incumbent has shown its support for the cryptocurrency industry by launching the first exchange-traded fund (ETF) that is dedicated to digital assets.
The American global financial services business Charles Schwab has announced the introduction of its first exchange-traded fund focused on cryptocurrencies like Bitcoin and Ethereum (ETF). On NYSE Arca, the new investment product will be traded using the ticker symbol “STCE.” It is anticipated that trading will begin on August 4th. It is important to note that the ETF will not invest directly in cryptocurrencies; as a result, people who are interested in cryptocurrencies should try not to get too excited about the new product.
Instead, it will give investors the opportunity to gain exposure to some of the most successful cryptocurrencies now available on the market. In the beginning of March, the company submitted an application to the United States Securities and Exchange Commission (SEC) in order to launch a cryptocurrency-related ETF.
Despite this, the launch of Schwab’s first cryptocurrency exchange-traded fund (ETF) is a step in the right direction for an industry that is working to increase its respectability within the more traditional financial sector. It has recently joined other financial powerhouses, like as Fidelity and Blackrock, in embracing the local market.
When asked about cryptocurrencies in January, Charles Schwab CEO Walt Bettinger stated that they were “impossible to ignore.” Bettinger also mentioned that the company was unable to offer direct trading with digital assets because of the absence of regulatory uncertainties. To this day, the company’s customers can only engage in cryptocurrency trading through the use of products offered by third parties such as Grayscale Bitcoin Trust (GBTC).
Since the beginning of this month, it has been reported that Fidelity and Schwab, along with Virtu Financial and Citadel Securities, have sponsored a new cryptocurrency trading platform. Charles Schwab was established in 1971, and the company currently has around $8.14 trillion in assets under administration.
