Giant investment platform Charles Schwab has just entered the world of crypto with its first offering - the Schwab Crypto Thematic ETF (SCTE). The SCTE will provide investors with global exposure to companies related to cryptocurrencies and other digital assets.
More good news for the crypto sector as Charles Schwab, the full-service wealth manager, with $6.83 trillion of client’s funds under management, that it will dip its toe into the crypto waters with its proprietary Crypto Thematic Index.
The SCTE boasts the lowest cost crypto-related ETF available on the market. David Botset, Managing Director, Head of Equity Product Management and Innovation at Schwab Asset Management, said of his company’s new ETF:
“We’re excited to be able to offer investors the Schwab Crypto Thematic ETF, which is different than other crypto-related ETFs on the market today in the way that the index identifies, selects and weights constituents based on a company’s relevance to the crypto ecosystem using natural language processing.”
“The index STCE is designed to track can offer more targeted exposure to cryptocurrency-focused companies compared to blockchain technology ETFs, which may have significant exposure to multi-national companies involved in blockchain.2 This new ETF is a great example of how we leverage our scalable foundation and core capabilities to innovate to help clients with more personalized needs.”
The STCE was developed by a Schwab research team to include a combination of human insight, artificial intelligence, and systematic models.
It does not track cryptocurrencies directly, but offers exposure to a variety of crypto-related business activities such as the validation of consensus mechanisms for mining, staking, or trading cryptocurrencies and other digital assets; it enables the buying or selling of goods by way of crypto and other digital assets; and the development, distribution, or implementation of blockchain applications or DLT in new cryptocurrencies or digital assets.