$7.5 Trillion AUM Company Charles Schwab Files for Crypto Economy ETF
Charles Schwab filed for a crypto economy ETF.
The ETF will be tracking the Schwab Crypto Economy Index.
The fund will generally track the same securities as those included in the index.
Charles Schwab, one of the biggest financial services companies, filed for a crypto economy ETF with the Securities and Exchange Commission (SEC).
Approval of this exchange-traded fund (ETF) will enable Charles Schwab’s clients to speculate on the index without holding any asset.
After Blackrock filed its crypto ETF in the latter half of the month, many companies are looking to make the most of the opportunity and follow suit.
Charles Schwab already handles over $7.5 trillion of assets under its management. Thus it is not surprising that the company launched a crypto economy ETF.
Unlike traditional ETFs, a crypto economy ETF will not directly track the cryptocurrencies. This is because Charles Schwab does not own any cryptocurrency.
Within the SEC filing too, the company clearly said that the Schwab Crypto Economy ETF would not be investing in cryptocurrencies or any digital assets.
Instead, the ETF is designed to track the Schwab Crypto Economy Index. This index is comprised of companies that are engaged in some of the other forms of crypto-related activities.
Companies using, buying, selling, and facilitating crypto and digital assets or conducting similar activities are referred to as companies in the “crypto economy.”
Reiterating the same the filing noted:
“The fund may, however, have indirect exposure to cryptocurrencies by virtue of its investments in companies that use one or more digital assets as part of their business activities or that hold digital assets as proprietary investments.”
Plan in Making
It isn’t surprising to see the sudden appearance of this ETF filing because not too long ago, Charles Schwab’s CEO had something positive to say about cryptocurrencies.
In an interview, CEO Walt Bettinger said that firms such as Schwab have a void for crypto, highlighting the importance of digital assets in digital finance.
Adding to the same, Jonathan Craig, Head of Investor Services at Charles Schwab, said:
“A full 16% of Schwab’s clients plan to put money into cryptocurrencies in the first half of the year.”
Thus, filing for a crypto economy ETF makes much more sense considering what clients are leaning towards.
This article was originally posted on FX Empire
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