Tag: CRYPTO ETF

Schwab to List Its First Crypto-Related ETF on NYSE

by Blockchain News

Schwab Asset Management, the asset management arm of The Charles Schwab Corporation, an US multinational financial services company based in California, on Friday, announced the launch of its first crypto-related exchange-traded fund (ETF) called the Schwab Crypto Thematic ETF (NYSE Arca: STCE).

The giant asset manager said that the crypto ETF will be listed on New York Stock Exchange Arca as from 4th August.

According to the report, the ETF will trade under the ticker STCE and is designed to track Schwab’s Crypto Thematic Index.

The Schwab’s EFT will not directly invest in or track digital assets, rather it is designed to provide investors with exposure to firms that are investing in or trading cryptocurrency or other digital assets.

David Botset, Managing Director, Head of Equity Product Management and Innovation at Schwab Asset Management, talked about the development: “For investors who are interested in cryptocurrency exposures, there is a whole ecosystem to consider as more companies seek to derive revenue from crypto directly and indirectly. The Schwab Crypto Thematic ETF seeks to provide access to the growing global crypto ecosystem along with the benefits of transparency and low cost that investors and advisors expect from Schwab ETFs.”

As one of the largest providers of ETFs in the United States, Schwab Asset Management has more than a decade of experience managing ETFs and a robust capital markets team that plays a crucial role to ensure the Schwab ETFs function efficiently.

Schwab also has a wide history in indexing. The financial institution launched its first proprietary index, the Schwab 1000 Index®, in 1991.

Why Crypto ETFs Continued Rising

Cryptocurrencies have continued to uphold their reputation despite volatility in recent months. So far, crypto users have more investment options than ever before as the list of cryptocurrency exchange-traded funds (ETFs) continues to expand.

In October 2021, the ProShares Bitcoin Strategy ETF’s (BITO) kicked off the launch of a series of new funds coming to market. The SEC had been hesitant to approve Bitcoin ETFs before that.

Schwab has joined a wide list of various financial institutions, including BlackRock, and Fidelity, among others that recently released their crypto-related exchange-traded products.

The increasing launches are driven by huge interest from institutional investors and the ability to trade them in regulated stock markets.

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Spot Crypto ETF in High Demand by Financial Advisers: Nasdaq Report

by Blockchain News

A new survey from Nasdaq has shed more light on the growth in an embrace of spot crypto Exchange Traded Fund (ETF) in the United States.

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The survey features 500 financial advisors, including Registered Independent Advisors (RIA) and independent brokers alike.

Per the survey, it was discovered that 86% of advisors who are currently invested in digital currencies plan to increase their holdings in the next year. The survey also revealed that 72% of those surveyed would be more open to investing their client’s funds in crypto if a spot Bitcoin ETF were to be approved by the U.S. Securities and Exchange Commission (SEC).

Of those surveyed, 50% acknowledged that they already use Bitcoin futures ETFs and 28% plan to start using them in the next 12 months. Currently, as many as three Bitcoin futures ETF have started trading in the U.S., the latest being from Teucrium, as reported by Blockchain.News last week.

“Over the last decade, financial advisors have been focused on shifting assets into index funds. As they incorporate digital assets into their investment strategies, they are expressing strong interest in a similar vehicle that can offer broad asset class exposure for their clients,” said Jake Rapaport, Head of Digital Asset Index Research, Nasdaq. “The vast majority of advisors we surveyed either plan to begin allocating to crypto or increase their existing allocation to crypto. As demand continues to surge, advisors will be looking for an institutional solution to the crypto question that now dominates client conversations.”

Other highlights of the survey dwelt on the level of risk adoption by these financial asset managers with most agreeing that just about 6% of the client’s portfolio is enough to invest in any crypto product. With the growing consideration of changing the narrative about crypto’s impact on Climate, the Nasdaq survey shows that 7% of investors agree that “ESG is a very important consideration when determining a client’s strategy toward digital assets.”

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Huobi Tech Files to List Crypto ETF Product in Hong Kong

by Blockchain News

Retail investors with a capital base of at most HK$8 million (US$1 million) will soon be able to gain exposure to a crypto-based Exchange Traded Fund (ETF) product as the Huobi Tech asset management firm has reportedly filed for such a product with the Securities and Futures Commission (SFC).

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Huobi Tech, an independent asset manager with no affiliation with the cryptocurrency trading outfit, Huobi Global, is riding on the recent allowance granted by Hong Kong authorities to extend the accessibility to regulated crypto ETF products beyond the reach of only professional traders or investors.

To get “all the trading and redemption done directly in Hong Kong … would give better protection to investors, as the fund will be regulated under Hong Kong law,” said Huobi Tech’s senior vice-president Romeo Wang, without commenting on Huobi’s application. “We will keep close and positive communications with regulators including the SFC” to “obtain the proper licences and approvals.”

The demand for related crypto products is growing at a fast pace the world over. The permission by the Hong Kong authorities to permit the trading of these unique ETF products is a sign that the government’s focus is essentially on powering the growth of these developing asset classes across the board. 

Cryptocurrencies are still considered relatively volatile and risky as an investment asset. Many regulators, including the United States Securities and Exchange Commission (SEC), have not approved a full-fledged spot Bitcoin ETF product, with a slew of rejections. 

Even though ProShares and VanEck are actively managing Bitcoin futures-based ETF as approved by the SEC, the more conservative investors are still awaiting a full-fledged Bitcoin or spot crypto ETF, a milestone that the SFC has proven to be well ahead of the US regulator per its recent disposition.

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Fidelity seeks approval for 2 more crypto-metaverse ETFs

by Cointelegraph

Fidelity Investments appeared undeterred by the U.S. Securities and Exchange Commission’s, or SEC’s, rejection of its Wise Origin Bitcoin Trust spot ETF on Thursday. Following the setback, the company filed two more prospectuses involving crypto-metaverse ETFs for regulatory approval. The proposals are titled are the Fidelity Crypto Industry and Digital Payments ETF and the Fidelity Metaverse ETF respectively. In rejecting the Wise Origin Bitcoin ETF, the SEC cited the exchange listing the ETF, the Cboe BZX, does not have a proper “surveillance-sharing agreement with markets trading” to prevent fraud and protect investor interests.

However, neither of the two new ETF applications submitted on the same day will have any exposure to digital assets. Instead, they seek to gain exposure to stocks of cryptocurrency and metaverse companies operating in the space. Additionally, the constituent companies must generate substantial revenue for their shares to be added to the fund.

For the Fidelity Metaverse ETF, sectors under consideration are computing hardware and components, digital infrastructure, design, engineering software, gaming technology, web/content developers, and smartphone and wearable technology. As for the Crypto Industry and Digital Payments ETF, it will invest in companies operating in cryptocurrency mining, cryptocurrency trading, crypto exchanges, blockchain tech firms, and digital payments processors. In total, there are over 40 digital currency ETFs awaiting a decision outcome from the SEC submitted from a variety of financial entities in the industry. The prior month, Fidelity officially gained regulatory approval in Canada to launch a Bitcoin ETF and Bitcoin Mutual Fund.