Schwab Asset Management, the asset management arm of Charles Schwab Corporation SCHW has announced the launch of a Schwab Crypto Thematic ETF, with the first day of trading expected to be on or about August 4 on the New York Stock Exchange. The ETF will trade under the symbol STCE.
Offers access to companies profiting from cryptos
Schwab's offering will offer investors access to companies that might profit from the development or use of cryptocurrencies in contrast to ETFs, which track the performance of a diversified portfolio or basket of digital assets.
Index does not track/invest in cryptos
Instead of directly tracking or investing in cryptocurrencies, the index delivers an exposure to companies that either directly or facilitate others in validating consensus mechanisms - like mining or staking, trade cryptos or other digital assets, enable the use of cryptos or other digital assets to buy or sell goods or services, and are involved in developing, distributing or implementing applications of blockchain or other distributed ledger technology.
Shwab indicates that with an annual operating expense ratio of 0.30%, STCE will be the lowest cost crypto-related ETF available to investors.
“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,” he added.
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