Schwab Asset Management has announced its first crypto-linked ETF – the Schwab Crypto Thematic ETF.
The crypto-themed ETF is expected to start trading on the New York Stock Exchange from August 4, 2022. The fund is designed to track Schwab Asset Management’s new proprietary index, the Schwab Crypto Thematic Index.
It will offer investors with global exposure to companies that may benefit from the development or utilization of cryptocurrencies and other digital assets.
Schwab Asset Management claimed that STCE will be the cheapest crypto-linked ETF available to investors today. STCE will attract an annual operating expense ratio of 0.30%, the bank said in a statement. This is indeed significantly lower than the Bitwise Crypto Industry Innovators ETF (BITQ) charge of 0.85% and VanEck, which just filed a new spot Bitcoin ETF application, charge of 0.50% on its Digital Transformation ETF (DAPP).
David Botset, Managing Director, Head of Equity Product Management and Innovation at Schwab Asset Management, said:
“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,” David added.
According to the asset management firm, the new Schwab Crypto Thematic ETF will track as closely as possible, before fees and expenses, the total return of the Schwab Crypto Thematic Index.
Crypto Thematic Index has been developed by Schwab Asset Management’s Thematic Research team, which utilizes human insight; artificial intelligence technology acquired via the acquisition of Motif — a leader in thematic investing; and systematic models to identify, select, measure, and weight companies based on their relevance to the crypto-related theme.
The index does not directly track or invest in cryptocurrencies. Rather, it is designed to deliver global exposure to companies that may benefit from one or more of the following business activities: either directly or facilitating others in validating consensus mechanisms for (such as mining or staking) investing in, or trading cryptocurrency or other digital assets; enabling the use of cryptocurrency or other digital assets to buy or sell goods or services; and developing, distributing or implementing applications of blockchain or other distributed ledger technology, including in new cryptocurrencies or digital assets.
Schwab Asset Management is the fifth largest ETFs provider with over a decade of experience managing ETFs. As of June 30, 2022, Schwab Asset Management managed approximately $575.9 billion on a discretionary basis and $34.4 billion on a non-discretionary basis.
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