On the New York Stock Exchange (NYSE), multinational financial services entity Charles Schwab is gearing up to roll out its inaugural ETF centered around cryptocurrency. The launch is anticipated in the ensuing week, as detailed in a prospectus submitted to the United States Securities and Exchange Commission (SEC) on July 29.
The ETF, carrying the ticker STCE, will not invest in cryptocurrency directly. Instead, it will provide access to the cryptocurrency ecosystem through firms “that incorporate digital assets into their business operations or possess digital assets as proprietary holdings, or via auxiliary investments managed by the fund.”
Counting well over a dozen, the unfolding dialogue is poised to greatly influence the operational dynamics of the crypto market.
The fund is designed to allocate up to 20% of its net assets to securities not encapsulated within the index. According to Charles Schwab, this ETF represents one of the most economical options for crypto-related investments available to prospective investors, boasting an annual operational cost of 0.30%. This is significantly lower than the fees charged by other ETFs, such as the VanEck ETF, which imposes a 0.50% fee.
For Charles Schwab, the decision to introduce a crypto-themed ETF marks a pronounced shift. Previously reticent about cryptocurrencies, CEO Walt Bettinger acknowledged in January 2022 that they were “difficult to disregard.” Bettinger also highlighted the necessity for regulatory clarity last year, a matter the United States continues to address.
