Multinational financial services giant Charles Schwab has responded to customer demand for cryptocurrency investments by submitting an application to the US Securities and Exchange Commission (SEC) to launch a crypto-economy traded fund.
The deposit comes just one week after Jonathan Craig, Schwab’s head of investor services, told news source Financial Advisor IQ that one in six Schwab clients had expressed an interest in investing in cryptocurrencies. He said:
“Up to 16% of Schwab clients plan to invest in cryptocurrency in the first half of the year.”
The proposed exchange-traded fund (ETF) aims to track the performance of an index designed to “provide global exposure to companies that could benefit from the development or use of cryptocurrencies and other digital assets.”
According to the official documents, the ETF will use the Schwab Cryptoeconomics Index as its benchmark and invest “at least 80% of its net worth” in stocks listed on the Schwab Cryptoeconomics Index of companies using Bitcoin (BTC). and other digital assets.
The ETF allows investors to speculate on the price of a basket of assets without having to own or otherwise own them. According to the submission, Schwab’s Crypto Economy ETF will not invest directly in cryptocurrencies or initial coin offerings (ICOs). However, he will invest in companies that operate in cryptocurrency.
“The Fund may be indirectly exposed to cryptocurrency thanks to its investments in companies that use one or more digital assets as part of their business activities or have digital assets as their own investments.”
Related: Grayscale Launches Campaign to Encourage Public Comment on Bitcoin ETF App
Schwab is joining rival financial institution Blackrock by applying for a crypto ETF. Blackrock, the world’s largest asset manager with total assets of $10 trillion (AUM), presented Jan. iShares Blockchain and Tech ETF will also invest in shares of blockchain and cryptocurrency companies on the New York Stock Exchange. Global Blockchain Technology Index from Exchange FactSet.
There are currently eight crypto or blockchain ETFs available to US investors from Bitwise, Global X, Siren and Amplify, and two from First Trust, VanEck and Capital Link. These funds manage $1.7 billion in total assets.
