Customer demand prompts Charles Schwab file for Crypto Economy ETF

cointelegraph.com:

Multinational financial services giant Charles Schwab has responded to client demand to invest in cryptocurrency by filing with the Securities and Exchange Commission (SEC) to launch a Crypto Economy ETF.

This filing comes just a week after the head of investor services at Schwab, Jonathan Craig, told news source Financial Advisor IQ that one in six Schwab clients had expressed interest in making crypto investments. He said:

The proposed Exchange-Traded Fund (ETF) aims to track the returns of an index designed to “deliver global exposure to companies that may benefit from the development or utilization of cryptocurrencies and other digital assets.”

$7.5 Trillion Asset Manager Charles Schwab Files for Crypto Economy ETF https://t.co/0cE6K3MvPB #CryptoCurrency (from Reddit) pic.twitter.com/XgCIdjHR2o

According to the official filing, the ETF would use the Schwab Crypto Economy Index as a benchmark index and invest “at least 80% of its net assets” into the stocks listed on the Schwab Crypto Economy Index from companies that utilize Bitcoin (BTC) “and other digital assets.”

An ETF allows investors to speculate on the price of a basket of assets without needing to custody or own them in any way. Schwab’s Crypto Economy ETF would not directly invest in crypto nor initial coin offerings (ICO), according to the filing. It would, however, invest in companies that deal with crypto:

Related: Grayscale launches campaign to encourage public comments on Bitcoin ETF application

Schwab joins competitor financial institution Blackrock by filing for a crypto ETF. Blackrock, the world’s largest asset management firm with $10 trillion in assets under management (AUM) made its filing on Jan. 22. Its iShares Blockchain and Tech ETF would also invest