Cryptocurrency

Charles Schwab Announces Crypto-Themed ETF

The exchange-traded fund will be made up of investments in crypto-related companies.

Cryptocurrency

Charles Schwab Announces Crypto-Themed ETF

The exchange-traded fund will be made up of investments in crypto-related companies.

On Friday, July 29, the financial service giant Charles Schwab announced its first crypto-themed ETF, the STEC, which will be made up of crypto-correlated companies — but, with no direct exposure to digital assets themselves. The investment firm also stated that has one of the lowest management fees on the market at just 0.30% according to its prospectus.

With the new ETF fees being 0.30% investors would pay an average of $31 USD a year on a $10,000 USD investment, with no additional or hidden fees. Trading of the new offering is said to begin on or around Thursday, August 4.

“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,” said David Botset, Managing Director, Head of Equity Product Management and Innovation at Schwab Asset Management. “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.”

Companies that will be included in the fund are those that might be involved in crypto facilitation or validation consensus mechanisms in regards to mining or staking. Other areas include investing or trading platforms and blockchain dapp developers.

The news is a significant sign of adoption for the space as the firm is among the top five ETF providers and has managed over $575 billion USD as of June 30, 2022, on a discretionary basis.

Other names to launch digital asset futures and short ETFs include Fidelity, BlackRock, and Pro Shares. Others still working to get approval for a Bitcoin Spot ETF include Grayscale and VanEck — to date all spot applications have been rejected by the SEC, including Cathie Wood’s Ark Invest.

In other news, MetaMask looks to reduce NFT scams with an updated “set approval for all” warning message.

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