Charles Schwab Plans to Offer Spot Crypto Trading Following Regulatory Changes
The conditions Charles Schwab is waiting for to engage more deeply in crypto may soon materialize, potentially integrating the firm into the crypto market significantly.
Currently, Schwab allows trading of spot bitcoin and ether ETFs, along with crypto futures contracts and options on specific BTC funds. Incoming CEO Rick Wurster indicated in a recent interview that Schwab aims to “Schwabize” the crypto market by reducing spreads and commissions to offer better deals for clients.
Wurster mentioned the company is awaiting changes in the regulatory environment before proceeding, which he believes will happen shortly. A Schwab spokesperson reiterated this by stating the firm plans to offer spot crypto trading once regulations evolve, acknowledging client interest in cryptocurrencies and closely monitoring the market.
In 2022, Schwab’s asset management division launched an ETF holding crypto-related stocks but did not participate when major competitors like BlackRock and Fidelity introduced US spot BTC funds in January. The spokesperson noted that Schwab continues to gather insights regarding investor needs related to bitcoin ETFs.
As of last week, net inflows into US BTC funds surpassed $30 billion within less than 11 months since launching. Neena Mishra, director of ETF research for Zacks Investment Research, anticipates Schwab's entry into the crypto space will involve spot bitcoin and ether ETFs. However, she cautioned that competing in a crowded market with established products will be challenging, even for a well-known brand.