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Schwab Launching Its First Crypto-Related ETF

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What You Need to Know

  • The ETF aims to offer exposure to companies that can benefit from crypto-related business activities.
  • The fund seeks to track new index that doesn't represent direct investment in cryptocurrencies.

The Charles Schwab Corp. has introduced its first crypto-related ETF, offering investors global exposure to companies that the firm expects will benefit from development of cryptocurrencies and other digital assets.

Schwab’s asset management arm plans to make the Schwab Crypto Thematic ETF (NYSE Arca: STCE) available on or about Thursday. 

The fund aims to track Schwab Asset Management’s new proprietary Schwab Crypto Thematic Index and will log the lowest annual operating expense ratio — 0.30% — currently available among crypto-related ETFs, the company says. The index does not directly track or invest in cryptocurrencies.

“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,” David Botset, managing director, head of equity product management and innovation at Schwab Asset Management, said in a press release Friday.

“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.”

Rather than directly tracking cryptocurrencies, the index will focus on companies that could profit from crypto-related business activities, including facilitating others in validating consensus mechanisms — mining or staking, for example — for investing in or trading digital assets; supporting cryptocurrency or other digital asset use in buying and selling goods or services; and developing or implementing blockchain technology applications.