Charles Schwab is launching a crypto economy exchange-traded fund (ETF). According to the company’s filing with the U.S. Securities and Exchange Commission (SEC), “Schwab Crypto Economy ETF” will trade on the NYSE Arca.
Charles Schwab Registers Crypto Economy ETF With SEC
Charles Schwab, one of the largest financial institutions in the U.S., filed a registration statement with the U.S. Securities and Exchange Commission (SEC) Wednesday for “Schwab Crypto Economy ETF.”
The new exchange-traded fund will be listed on the NYSE Arca, the filing shows, adding that the registration statement is expected to become effective on May 16. The registrant is Schwab Strategic Trust, Charles Schwab’s registered investment company.
“The fund’s goal is to track as closely as possible … the total return of an index that is designed to deliver global exposure to companies that may benefit from the development or utilization of cryptocurrencies (including bitcoin) and other digital assets, and the business activities connected to blockchain and other distributed ledger technology,” the filing describes, adding:
To pursue its goal, the fund generally invests in stocks that are included in the Schwab Crypto Economy Index.
The index is designed to deliver global exposure to companies that are actively engaged in crypto-related business activities such as mining, staking, investing, or trading cryptocurrencies.
Noting that “The fund will not invest in cryptocurrency or digital assets directly,” the filing details:
The fund may, however, have indirect exposure to cryptocurrencies by virtue of its investments in companies that use one or more digital assets as part of their business activities or that hold digital assets as proprietary investments.
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Written by: Kevin Helms