Vanguard reiterates it has no bitcoin ETF plans. But what about Schwab?

Schwab Asset Management “continues to learn and hear from investors as to their investment needs and considerations for investing in bitcoin ETFs,” spokesperson says

article-image

Alex Millauer/Shutterstock modified by Blockworks

share

As spot bitcoin ETFs continue fighting for assets, some predict another fund issuer could soon enter the arena. 

The asset management arm of financial giant Schwab, whose US ETFs manage about $320 billion in assets, is a candidate to launch such a fund, some industry watchers said.

Charles Schwab — alongside Fidelity — currently allows investors to trade spot bitcoin ETFs on its brokerage platform. But while Fidelity also offers its own spot bitcoin ETF, Schwab does not. 

Read more: Big ETF players remain on the sidelines amid possible milestone bitcoin fund approval

The Fidelity Wise Origin Bitcoin Fund (FBTC) has seen $1.9 billion of inflows since launching on Jan. 11, according to Bloomberg Intelligence data. That total is second only in the segment to the nearly $2.2 billion of inflows notched by BlackRock’s iShares Bitcoin Trust (IBIT). 

Bloomberg Intelligence analyst said in an X post Saturday that the success of rival Fidelity’s FBTC could spur Schwab “to file something sooner rather than later.”  

“They’re never first to market in anything but they make [a big] impact when they come in [with a] dirt cheap fee [and] 30 [million] active brokerage [accounts],” Balchunas added.

Nate Geraci, president of The ETF Store, said in a separate X post that he agreed with Balchunas — calling Schwab’s potential entrance into the segment a “foregone conclusion.”

Though Schwab launched an ETF that holds crypto-related stocks in 2022, the company has not revealed any plans to launch a spot bitcoin ETF. 

A spokesperson for the firm told Blockworks Monday it does not comment on speculation.     

“Schwab Asset Management continues to learn and hear from investors as to their investment needs and considerations for investing in bitcoin ETFs,” the representative noted earlier this month. “As is the case with everything we do, if a decision is made by us to offer an ETF in this space, we will seek to deliver on those investment needs with a client focus.”

Read more: Bitcoin ETF Tracker

The predictions by some segment observers come as State Street’s interest in spot bitcoin ETFs also remains uncertain. Fellow fund giant Vanguard meanwhile has repeatedly made its stance clear that it does not intend to launch a spot bitcoin ETF. 

Janel Jackson, global head of ETF capital markets, said in a Jan. 24 Q&A on the firm’s website that “we do not currently believe that there is an appropriate role for them to play in long-term portfolios.” 

Vanguard also does not allow investors to buy or sell such funds on its platform. 

Read more: As spot bitcoin ETF volumes soar, Vanguard is blocking such trades

Jackson added: “In Vanguard’s view, crypto is more of a speculation than an investment.”

Ten spot bitcoin ETFs have now traded for more than two weeks after a slate of fund firms gained long-awaited approval from the Securities and Exchange Commission.  

Despite Balchunas and Geraci saying they expect Schwab to throw its hat in the spot bitcoin ETF ring, not all believe there will be more coming to market.  

Sumit Roy, senior analyst at ETF.com told Blockworks earlier this month that he didn’t expect any other issuers to launch “vanilla” spot bitcoin ETFs in the future.

He added at the time: “But I do expect that there will be more creative funds that add other types of exposures on top of just bitcoin.”


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research Report Templates.png

Research

ZKPs enable efficient offchain transaction processing and validation, resulting in increased throughput and reduced fees. Solana's ZK Compression leverages ZKPs to minimize onchain storage costs, while Sui's zkLogin streamlines user onboarding by replacing complex key management with familiar OAuth credentials.

article-image

The crypto asset manager lowered its planned fee from 0.25% to 0.15%, undercutting its competitors

article-image

Plus, a look at planned ETH ETF fees and how they differ from their BTC counterparts

article-image

North Korea suspected in breach of Indian exchange’s multisig wallet

article-image

Plus, Sanctum’s CLOUD token has officially launched — but not without problems

article-image

It’s not yet clear whether Donald Trump is pumping bitcoin. But an unofficial memecoin is still seeing benefit.