Analysts Suggest Financial Giant Charles Schwab Poised to Shake Up Bitcoin ETF Market With Potential Late Entry

In the wake of a noteworthy 11-day period during which U.S.-centered spot bitcoin exchange-traded funds (ETFs) amassed a trading volume totaling $25.36 billion, discussions have emerged about the potential involvement of Charles Schwab, the American multinational financial services corporation. Eric Balchunas, Bloomberg’s lead ETF analyst, advises, “don’t sleep on Schwab, they’re never first to market in anything but they make back impact when they come in.”

Analyst Predicts Charles Schwab’s Delayed Move to Disrupt Bitcoin ETF Arena

Recent conversations have surfaced about Charles Schwab gearing up to introduce a spot bitcoin ETF, hot on the heels of the debut of ten U.S.-based ETFs on Jan. 11, 2024. In her article on riabiz.com, Lisa Shidler touches upon this development, remarking that “Charles Schwab Corp. is being cryptic about cryptocurrency.” Shidler delves into how Schwab might leverage its extensive scale and competitive low-fee pricing strategy to make a bold move with its bitcoin ETF.

ETF Institute co-founder Nate Geraci believes Schwab will join the spot bitcoin ETF race.

She further explores this topic in a discussion with Eric Balchunas, Bloomberg’s senior ETF analyst. “They may shock the world and offer something that is 10-basis-points in a few months,” Balchunas told Shidler. “I wouldn’t be surprised. They could have something up their sleeve. They might like to do something like that.” Morningstar analyst Bryan Armour clarified to Shidler that this approach is typical of Schwab’s operational style.

“It’s consistent with what we’ve seen from Schwab, overall. They’re more methodical with their approach to product development than others,” Armour told the riabiz.com reporter. “They trade the first-mover advantage for having a more thoughtful lineup that can stick with them for the long-term.” On the social media platform X, ETF Institute co-founder Nate Geraci agrees with Balchunas and stated:

Schwab to enter spot bitcoin ETF race? I say it’s already [a] foregone conclusion. Agree [with] Eric [and] believe will happen (sooner rather than later).

Charles Schwab offers a full range of brokerage, banking, and financial advisory services including dealing with exchange-traded products (ETPs). Schwab founded in 1971 offers a wide range of ETPs, including complex ETPs, leveraged, and inverse ETPs. On X Balchunas explained that Schwab could get aggravated by Fidelity’s significant lead in the spot bitcoin ETF race.

“Don’t sleep on Schwab,” Balchunas said. “They’re never first to market in anything but they make back impact when they come in [with] dirt cheap fee [plus] 30 [million] active brokerage accts. And they do NOT like Fidelity, so FBTC’s success could annoy them to file something sooner rather than later.”

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