Schwab Preparing to Offer In-House Crypto Product
Low-cost fund offering intra-day trading and potential tax efficiency
Serves as a complement/diversifier to core
WESTLAKE, Texas--(BUSINESS WIRE)--Schwab Asset Management, the asset management subsidiary of The Charles Schwab Corporation (NYSE: SCHW), today announced that it is preparing to offer its first in-house crypto product to its 33 million clients.
The Schwab Crypto Thematic ETF (STCE) will be an actively managed fund that invests in companies that are materially involved in the cryptocurrency ecosystem, including companies involved in blockchain technology, cryptocurrency mining, and cryptocurrency trading.
"We believe that cryptocurrencies are here to stay and are becoming increasingly relevant to our clients," said Tom Anderson, CEO of Schwab Asset Management. "With STCE, we are providing our clients with a low-cost and convenient way to access the crypto market through a fund that is managed by our experienced investment team."
STCE will be available for purchase and sale on the New York Stock Exchange Arca, Inc. beginning in the coming weeks. The fund will have an expense ratio of 0.30%.
"We are excited to offer STCE to our clients," said David Botset, head of ETF product management at Schwab Asset Management. "We believe that this fund will be a valuable addition to our lineup of ETFs and will provide our clients with another way to diversify their portfolios."
Schwab Asset Management is a global investment management firm with over $6 trillion in assets under management. The firm offers a wide range of investment products and services to individual and institutional investors.
Bitcoin, launched in 2009, is one of the most actively traded cryptocurrencies with an overall market cap in excess of $1 trillion. Cryptocurrencies are digital or virtual currencies that use cryptography for security and are not backed by any central bank or government.
Conclusion: Schwab Asset Management's entry into the crypto market with its first in-house crypto product is a significant milestone in the growing adoption of cryptocurrencies by mainstream financial institutions. The launch of STCE provides investors with a convenient and cost-effective way to access the crypto market through a fund that is managed by an experienced investment team.
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