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Charles Schwab plans to expand its ETF lineup to include a new crypto fund. Rather than putting money directly in cryptocurrencies, the new fund will target companies that benefit from the crypto investments and technology.
Schwab, the fifth largest exchange traded fund issuer with over $257B assets under management, filed on Wednesday with the U.S. Securities and Exchange Commission a prospectus for the Schwab Crypto Economy ETF.
Schwab’s Crypto Economy ETF is designed to deliver global exposure to companies that may benefit from the development or utilization of cryptocurrencies, including Bitcoin (BTC-USD) and other digital assets such as Ethereum (ETH-USD) or Litecoin (LTC-USD). Moreover, the fund plans to provide investors access to business activities that are connected to blockchain and other distributed ledger technology.
Furthermore, the exchange traded fund filing made clear that the fund will not invest in cryptocurrency or digital assets directly or initial coin offerings.
At the current juncture, Charles Schwab has not outlined an expense ratio or ticker symbol for the new ETF, but it has disclosed that the fund intends to trade on the New York Stock Exchange.
Daily price action: Bitcoin -0.6%, Ethereum -1.9%, and Litecoin -0.3%.
Year-to-date price action: Bitcoin -5.6%, Ethereum -20.5%, and Litecoin -23.6%.
In other related crypto news, Pantera Capital backed South African cryptocurrency exchange VALR.com in its most recent round of funding to expand its digital footprint.