Charles Schwab to launch ETF based on a crypto-economy index

One of the largest brokerage firms in the United States, Charles Schwab, has filed with the SEC application to launch an exchange-traded fund (ETF) based on its own ‘crypto-economy index’.

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\”The fund’s objective is to track the overall return of the index as precisely as possible, net of fees and expenses, providing global exposure to companies that benefit from mining or use of cryptocurrencies (including Bitcoin) and other digital assets, as well as business activity related to blockchain and other DLT technologies,\” the product description said.

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It is not disclosed which firms Schwab has included in its index. If approved, the Crypto Economy ETF will trade on NYSE Arca.

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The product structure does not contemplate direct investment in cryptocurrencies or ICO.

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\”The fund, however, may indirectly engage with cryptocurrencies through investments in companies that use one or more digital assets in their operations or hold them as part of their own investments,\” the firm clarified.

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Earlier, the Commission approved the launch of ETFs based on crypto-space company indices from Grayscale Investments and Valkyrie Investments.

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In 2021, Charles Schwab CEO Walt Bettinger said that the firm would enter the cryptocurrency industry after obtaining greater regulatory clarity from regulators.