News - Is Charles Schwab's Bitcoin ETF coming?

By Mike Hesp

Is Charles Schwab's Bitcoin ETF coming?

Bitcoin (BTC)
ETF

The competition between Bitcoin ETF-providers in the U.S. continues. Charles Schwab could now enter the fray. What can we expect now?

While the existing Bitcoin ETFs are fiercely competing for the capital of American investors, some experts now predict that financial giant Charles Schwab will soon enter the market. It currently manages assets of about $320 billion.

Compared to its competitors Fidelity and BlackRock, Schwab has opted for a more moderate strategy. Although the asset manager offers its clients access to existing Bitcoin ETFs from other providers, it has so far refrained from launching its own product in the crypto sector.

This has allowed Schwab to observe market dynamics so far, which could mean a competitive advantage in the future. This is also a big difference from competitor Vanguard, which has strictly prohibited its investors from buying or selling Bitcoin ETFs on its platform.

According to Bloomberg analyst Eric Balchunas Schwab has the luxury of time to plan its entry into the market thanks to its loyal customer base and low-cost products. Balchunas assumes Schwab will surprise the market with even lower costs.

The company's growing interest in the crypto market was evidenced by its investment in crypto exchange EDX Markets in June 2023, which highlighted Schwab's increasingly positive attitude toward cryptocurrencies.

Schwab is also actively involved in the crypto-related investment sector in other ways. Among other things, the company offers a fund with extensive holdings in major crypto players such as Coinbase, Microstrategy and Riot Platforms.

While the industry awaits Schwab's Bitcoin ETF, competition from such an ETF is likely to increase further. Bitcoin ETFs currently traded by BlackRock, Fidelity and VanEck have already led to a huge outflow of capital from the Grayscale Trust because of their favorable fees.

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