Schwab Crypto Thematic ETF to start trading on or about August 4

However, the Schwab Crypto Thematic ETF does not directly invest in or track cryptocurrencies.

According to Schwab Asset Management, the asset management arm of The Charles Schwab Corporation, trading in the Schwab Crypto Thematic ETF has officially started. Trading is expected to start on or about August 4, 2022.

The fund is designed to track the Schwab Crypto Thematic Index, a brand-new, exclusive index from Schwab Asset Management that gives investors access to companies that can make money from the development or use of cryptocurrencies and other digital assets on a worldwide scale. The least expensive cryptocurrency-related ETF currently available to investors is STCE, which will have an annual operating expense ratio of 0.30 percent.

The index does not directly invest in or follow cryptocurrencies. Instead, it aims to expose companies that could gain from one or more of the following commercial endeavours: creating, distributing, or implementing blockchain or other distributed ledger technology applications; directly validating consensus mechanisms for purchasing, trading, or investing in cryptocurrencies or other digital assets; or aiding others in doing so.

“For investors who are interested in cryptocurrency exposures, there is a whole ecosystem to consider as more companies seek to derive revenue from crypto directly and indirectly,” said David Botset, Managing Director, Head of Equity Product Management and Innovation at Schwab Asset Management. “The Schwab Crypto Thematic ETF seeks to provide access to the growing global crypto ecosystem along with the benefits of transparency and low cost that investors and advisors expect from Schwab ETFs.”

The objective of the Schwab Crypto Thematic ETF is to closely resemble the total return of the Schwab Crypto Thematic Index before expenses. The index was developed by Schwab Asset Management’s Thematic Research team and uses a powerful combination of human insight, artificial intelligence technology obtained through the acquisition of Motif, a pioneer in thematic investing, and systematic models to find, pick, evaluate, and weight companies in accordance with their relevance to the crypto-related theme.