Schwab Asset Management is the asset management arm at The Charles Schwab Corporation. It was founded in California by The Charles Schwab Corporation. announced The launch of the first crypto-related exchange traded fund (ETF), called the Schwab Crypto Thematic (NYSE Arca STCE).
According to the massive asset manager, crypto ETFs will be listed on New York Stock Exchange Arca beginning at 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.”
Schwab Asset Management is one of the most prominent providers of ETFs within the United States. With more than 10 years of experience in managing ETFs, Schwab Asset Management also has a strong capital markets team that plays an important role in ensuring the Schwab ETFs work efficiently.
Schwab also has a rich history in indexing. The financial institution launched its first proprietary index, the Schwab 1000 Index®, in 1991.
Why Crypto ETFs Keep Rising
Despite volatility in recent months, cryptocurrencies have managed to maintain their reputation. As the number of ETFs (exchange-traded funds) for cryptocurrency continues to grow, crypto users now have more investment options than ever.
The launch of a number of new funds was initiated by the ProShares Bitcoin Strategy ETF (BITO) in October 2021. Prior to that, the SEC had hesitated to approve Bitcoin ETFs.
Schwab joined a large number of financial institutions including BlackRock, and Fidelity, among others that recently released their crypto-related exchange-traded products.
The rising number of launches can be attributed to institutional investors’ huge interest and the possibility to trade them on regulated stock markets.