As Fidelity and BlackRock compete to attract more capital to their spot bitcoin ETFs, while Vanguard completely avoids cryptocurrencies, asset manager Charles Schwab, which also manages billions of dollars, has so far taken a centrist position. Schwab’s clients can buy shares in all approved spot bitcoin ETFs, but Schwab has yet to create a suitable offering.
However, this could soon change, experts predict, as Schwab weighs the advantage of entering a space where other participants have rushed to be among the first.
– Users are so loyal, and the products are so cheap that they don’t have to rush. Rain or shine, the flows are coming – said Eric Balchunas, senior ETF analyst at Bloomberg.
Balchunas speculated that Schwab’s delay could allow the company to offer lower fees than its competitors.
– They could shock the world and offer 10 basis points in a few months – he said.
On X, expert Nate Geraci predicted that Schwab’s offering could come sooner rather than later.
– I say it’s a done deal – wrote Geraci.
Unlike Vanguard, Schwab has shown some enthusiasm for the crypto space after initially dismissing cryptocurrencies as too speculative for investors. The asset manager supported the EDX Markets exchange, which launched in June 2023, alongside Fidelity and Citadel.
Schwab also offers an ETF that invests in companies related to crypto, such as Coinbase, Microstrategy, and Riot Platforms, but does not own digital assets itself.
Ten Financial Institutions Working on Launching Bitcoin ETFs
The Hong Kong Securities and Futures Commission (SFC) has reportedly received its first application for a spot bitcoin ETF just weeks after the SEC approved the same types of ETFs in the U.S.
Harvest Hong Kong, one of the largest fund managers in China, submitted a spot bitcoin ETF application to the Hong Kong SFC on January 26, Tencent News reported. The report adds that the regulatory body is actively working to expedite the ETF approval process in Hong Kong after the Chinese New Year on February 10.
According to the report, the Hong Kong regulatory body may follow a similar approach to the U.S. SEC and approve more spot ETFs to ensure a level playing field. While Harvest Fund may be the first applicant, it may not be the only one. Several regional financial institutions have expressed interest in launching a spot bitcoin ETF in 2024.
According to local media, at least 10 financial institutions in the country are actively working on launching a spot bitcoin ETF. A financial giant like Venture Smart Financial Holdings has already set the first quarter of 2024 as its target for launching a spot ETF.
Several existing crypto companies that launched crypto futures ETFs in Hong Kong are also expected to be among those submitting bitcoin ETFs. Samsung Asset Management, which launched the Samsung Bitcoin Futures ETF in 2023, has reportedly stated that it will not rule out the possibility of exploring the launch of a spot ETF.
Hong Kong has become one of the leading crypto destinations in Asia thanks to the pro-crypto approach of regulators in 2023. The SFC created regulations aimed at the crypto sector and industry in 2023, allowing institutional and retail investors to participate in crypto activities. Even before the U.S. SEC approved the first spot bitcoin ETF, the SFC opened the door for crypto ETFs and expressed its readiness to accept applications for authorization of various funds, including spot ETFs for digital assets and existing crypto futures ETFs.
