Charles Schwab, the American multinational financial services company, has announced the launch of its first cryptocurrency-themed exchange-traded fund (ETF).
The new investment product will trade under the STCE ticker on NYSE Arca. Its trading is scheduled to start on Aug. 4.
It is worth noting that the ETF will not invest in cryptocurrencies itself, which is why crypto enthusiasts should not get too excited about the new product. Instead, it will provide investors with exposure to some of the top cryptocurrencies within the industry.
The company initially filed with the U.S. Securities and Exchange Commission to launch a crypto-themed ETF in early March.
Still, Schwab launching its first crypto ETF is a positive development for an industry that is attempting to gain more legitimacy within the traditional financial sector. It has now joined such financial giants as Fidelity and Blackrock in embracing the native market.
In January, Charles Schwab CEO Walt Bettinger said that cryptocurrencies were "hard to ignore." Bettinger also noted that the lack of regulatory uncertainty prevented the company from offering direct trading with digital assets. So far, its clients are only able to trade crypto through third-party products such as Grayscale Bitcoin Trust (GBTC).
Last month, Fidelity and Schwab have reportedly backed a new crypto trading platform together with Virtu Financial and Citadel Securities.
Founded back in 1971, Charles Schwab boasts roughly $8.14 trillion in assets under management.