Bloomberg Senior ETF analyst Eric Balchunas predicts that Charles Schwab, an $8.5 trillion financial giant, may soon offer a low-fee Bitcoin spot fund.
Since the SEC approved the launch of multiple Bitcoin spot exchange-traded funds (ETFs), top asset managers have stiffly competed for the top spot.
Interestingly, BlackRock is currently in the top position, with its Bitcoin fund approaching nearly $2 billion in assets under management (AUM).
Charles Schwab May Launch Bitcoin Spot ETF
The Bitcoin spot ETF market competition could heat up soon, as Bloomberg Senior ETF analyst Eric Balchunas recently predicted that top asset manager Charles Schwab might roll out its BTC fund.
Speaking with RIABiz over the weekend, Balchunas said the $8.5 trillion asset manager may roll out a Bitcoin fund to help it claim the second position in the BTC spot ETF market.
The ETF analyst speculated that Schwab could achieve this feat by offering its own Bitcoin fund, combining its scale and lower fee pricing strategy.
Notably, Balchunas said he would not be surprised if Schwab decided to offer a Bitcoin fund with a fee as low as 0.10% in a few months.
“They could have something up their sleeve. They might like to do something like that,” he added.
It bears mentioning that Bitwise currently holds the title for offering the least-expensive Bitcoin spot ETF, with investors paying a paltry fee of 0.20%. Schwab launching an ETF with a lower fee would give it a competitive edge in the market.
Top ETF Analyst React
In a recent X post, top ETF expert Nate Geraci also agreed with Balchunas, emphasizing that Schwab rolling out a Bitcoin spot ETF product will happen sooner rather than later.
"They may shock the world & offer something that’s 10bps in a few months.” –@EricBalchunas
Schwab to enter spot bitcoin ETF race?
I say it’s already foregone conclusion. Agree w/ Eric & believe will happen (sooner rather than later).
via @lisshidler https://t.co/5yr2y7gBhi pic.twitter.com/hHp6gh4FNL
— Nate Geraci (@NateGeraci) January 27, 2024
Schwab Customers Gain Exposure to Cryptos
In the meantime, Schwab has not disclosed plans to offer its own proprietary Bitcoin spot fund. However, customers of the financial giant can invest in all 11 Bitcoin spot products through the company’s official website (schwab.com) and the thinkorswim platform.
Schwab, which previously wrote off crypto as being too speculative, has recently changed its stance. The company currently has indirect exposure to crypto assets.
Last year, Schwab, alongside major financial giants like Fidelity and Citadel Securities, backed EDX Markets, a crypto exchange offering Bitcoin, Ethereum, Bitcoin Cash, and Litecoin trading.
The asset manager also offers an ETF that invests in companies affiliated with crypto, including Coinbase and MicroStrategy. Per the RIABiz article, the fund has only $22.1 million in AUM since its launch in 2022.
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