Charles Schwab to launch Spot Crypto ETF if regulations change

Asset manager Charles Schwab could enter the crypto exchange-traded fund (ETF) market following comments from new CEO Rick Wurster.

Wurster told Bloomberg that the company would offer spot digital currency trading if the US regulatory environment changed.

The regulatory environment will change over time

In a Nov. 21 interview, the incoming head of the financial services firm said it may make a strategic shift and enter the spot crypto ETF market in anticipation of regulatory changes in the US.

Schwab’s interest in crypto is likely sparked by the current bullish market sentiment. Analysts believe the surge in activity is due to what they call the “Trump trade,” fueled by Donald Trump’s victory in the recently concluded US presidential election.

Wurster stated that the company is “preparing for the eventuality” that regulations will make it easier to start local trading of crypto ETFs.

“Crypto has definitely caught the attention of many, and they’ve made a lot of money doing it… I didn’t buy crypto, and now I feel like a fool,” he admitted.

The $7.13 billion asset manager currently offers clients indirect exposure to the digital asset market through crypto-linked ETFs and futures. As of now, investors expect the company to eventually adopt direct trading to remain competitive.

Schwab will undergo a leadership change early next year as current CEO Walt Bettinger, who turns 65, steps down from Wurster. Bettinger has been with the company since 2008.

SEC Chairman’s Resignation to Open Door for Mass Crypto Adoption?

Like many other traditional banking giants, Charles Schwab is more likely to join the crypto industry following the announcement of the resignation of Securities and Exchange Commission (SEC) Chairman Gary Gensler.

According to a press release shared by the SEC, Gensler will step down on January 20, 2025, the day of Trump’s inauguration.

The development has been met with optimism throughout the crypto industry. Like Rick Wurster, financial analysts foresee a more “legitimate and legal” regulatory climate for digital assets under the Trump administration.

In addition, crypto directly helped elect more than 50 politicians to Congress, and Capitol Hill currently has more than 260 pro-crypto lawmakers who the industry hopes will pass laws that favor its interests.

Kristin Smith, the executive director of the Blockchain Association, told the BBC that everyone in the crypto community is excited that Gensler is stepping down. He claimed that he had only limited the growth of the industry through his much-maligned approach to regulation by enforcement.

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