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Charles Schwab is gearing up to join the race to offer Bitcoin exchange-traded funds (ETFs), according to experts. With $8.5 trillion in client assets under its management, the firm's potential entry into the realm of spot Bitcoin ETFs signals a significant development.
Recent reports, including insights from RIABiz, suggest that Charles Schwab may soon unveil its own spot Bitcoin ETF.
“I wouldn’t be surprised. They could have something up their sleeve. They might like to do something like that.” Morningstar analyst Bryan Armour told RIABiz.
While competitors like Fidelity and BlackRock have already introduced their spot Bitcoin ETFs, Charles Schwab has maintained a centrist stance. Although Schwab clients can invest in approved spot Bitcoin ETFs, the firm has refrained from launching its proprietary offering.
However, industry experts predict that Schwab's deliberate approach may yield strategic advantages, potentially allowing the firm to offer lower fees compared to its competitors. Bloomberg's senior ETF analyst Eric Balchunas anticipates that Schwab could introduce an offering with remarkably competitive pricing, possibly disrupting the market dynamics
Don't sleep on Schwab, they're never first to market in anything but they make back impact when they come in w/ dirt cheap fee + 30M active brokerage accts. And they do NOT like Fidelity, so $FBTC's success could annoy them to file something sooner rather than later. https://t.co/w92J51Ildl
— Eric Balchunas (@EricBalchunas) January 27, 2024
“They trade the first-mover advantage for having a more thoughtful lineup that can stick with them for the long-term.” ETF Institute co-founder Nate Geraci supports Balchunas' view and stated:
"Schwab to enter spot bitcoin ETF race? I say it’s already [a] foregone conclusion. Agree [with] Eric [and] believe will happen (sooner rather than later)."
Shifting Perspectives
With its extensive range of brokerage, banking, and advisory services, Charles Schwab stands as a formidable player in the financial services industry. Unlike its initial skepticism towards cryptocurrencies, Charles Schwab has displayed a growing interest in the crypto space.
The firm's involvement with the EDX Markets exchange, alongside Fidelity and Citadel Securities, indicates a shift towards embracing innovative financial products.
Despite maintaining a cautious stance in its public messaging, Schwab's undisclosed plans regarding Bitcoin ETFs hint at a calculated and potentially disruptive strategy. The firm's historical preference for competitive pricing and prudent product launches may redefine Bitcoin investing.