Schwab Launches ETF Providing Investors With Major Crypto Exposure

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Charles Schwab
Charles Schwab

Investors can now buy cryptos in a new way.

This month, Schwab Asset Management released its Schwab Crypto Thematic ETF (STCE) to embrace investors’ demands.

David Botset, told CNBC’s “ETF Edge” that the new feature is unique because investors get an indirect way to play cryptocurrencies significantly.

“It is a very speculative investment,” the head of equity product and strategy said on Monday. “But we are seeing certain segments of Schwab investors that are seeking access to this asset category in their portfolios.”

The fund does not target actual digital currencies. Instead, it bundles firms with skin in the game.

″[The Schwab Crypto Thematic ETF] 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,” Botset said in the ETF launch news release.

Widely held crypto names, including MicroStrategy, Marathon Digital, Riot Blockchain, Coinbase, Silvergate Capital, Robinhood, and Interactive Brokers, have holdings in the fund.