Charles Schwab Files Prospectus for Crypto-Themed ETF

Charles Schwab, a global provider of financial services, will soon launch its first exchange-traded fund with a cryptocurrency theme on the New York Stock Exchange (NYSE). According to a prospectus submitted on July 29 to the United States Securities and Exchange (SEC) Commission, the ETF is anticipated to go public within the next week.

The ETF won't make direct investments in cryptocurrencies and will trade under the ticker STCE. It will instead give investors access to the cryptocurrency ecosystem through businesses "that use digital assets as part of their business activities, that hold digital assets as proprietary investments, or through other non-principal investments held by the fund."

The fund will invest up to 20% of its net assets in securities that are not part of the index. With an annual operating expense of 0.30 percent, Charles Schwab claims that this is one of the least expensive crypto-related ETFs available to investors. In reality, there are other ETFs that have larger commission fees. The VanEck ETF, for instance, levies a 0.50 percent fee.

Charles Schwab's CEO Walt Changes may occur has been wary of cryptocurrencies, so the move to introduce an ETF with a crypto theme is a significant shift for the company. However, the CEO claimed that cryptocurrencies were "impossible to ignore" in January 2022.

Additionally, Changes may occur stated that he was seeking regulatory clarity last year, and the US has been working on that.

Currently, there are well over a dozen crypto ETFs available in the United States, and the number keeps expanding. The U.S. SEC's refusal to approve a spot bitcoin ETF stands out as one notable omission.

Before the market gets a spot crypto ETF, the SEC thinks that it needs greater investor protection and market manipulation prevention measures. Having said that, the SEC is taking center stage in this debate and is likely to have a major impact on how the cryptocurrency market functions.

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