Charles Schwab is introducing an exchange-traded fund dedicated to the crypto economy (ETF). According to the company’s SEC registration, the “Schwab Crypto Economy ETF” will trade on the NYSE Arca.
Charles Schwab Files SEC Application for Crypto Economy ETF
Charles Schwab, one of the major financial firms in the United States, registered the “Schwab Crypto Economy ETF” with the Securities and Exchange Commission (SEC) on Wednesday.
According to the filing, the new exchange-traded fund will be listed on the NYSE Arca, and the registration statement is expected to become effective on May 16. Schwab Strategic Trust, Charles Schwab’s registered investment company, is the registrant.
“The fund’s objective is to track the total return of an index that is designed to provide global exposure to companies that may benefit from the development or use of cryptocurrencies (including bitcoin) and other digital assets, as well as business activities associated with blockchain and other distributed ledger technology,” the filing states.
The fund generally invests in stocks that are featured in the Schwab Crypto Economy Index to accomplish this goal.
The index is aimed to provide exposure to enterprises engaged in crypto-related business activities such as mining, staking, investing, or trading cryptocurrencies on a global scale.
The filing notes that “the fund will not invest directly in bitcoin or digital assets.”
However, the fund may have indirect exposure to cryptocurrencies through its investments in companies that employ one or more digital assets in their business operations or that hold digital assets as proprietary investments.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.