As Fidelity’s spot Bitcoin ETF competes with BlackRock’s top slot offering and Vanguard moves away from crypto entirely, trillion-dollar asset manager Charles Schwab has so far taken a moderate stance. Schwab customers can purchase shares in any approved spot Bitcoin ETF, but Schwab has not yet created a suitable offering.
But experts predict that this could soon change in the future, as Schwab considers the benefits of being second in a field where other players are rushing for first place. “Customers are so loyal and the products are so affordable that there is no need to rush. Flows will come in, come rain or shine,” Eric Balchunas, senior ETF analyst at Bloomberg, told RIABiz.
Balchunas speculated that Schwab’s delays could allow the company to offer lower fees than its competitors. “They could deliver 10 basis points in a few months and shock the world,” he said.
At X, expert Nate Geraci predicted that an offer from Schwab could come soon. “I say it’s (a) foregone conclusion.” Geraci wrote.
Schwab, unlike Vanguard, has shown some enthusiasm for the cryptocurrency space after initially issuing cryptocurrencies that were too speculative for investors. The asset manager worked with Fidelity and Citadel to support the EDX Markets exchange, which launched in June 2023.
Schwab also offers ETFs that invest in crypto-related companies such as Coinbase, Microstrategy, and Riot Platforms, but do not hold the digital assets themselves. The fund is currently up 19% from its August 2022 launch price.
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