There are questions floating around in investment circles today regarding whether or not Charles Schwab will offer Bitcoin and other cryptocurrency to its investors. The speculation started after Charles Schwab’s CEO Walt Bettinger briefly discussed on a call with analysts Thursday whether the company will be expanding into cryptocurrency trading, one of the hottest areas of the brokerage business these days.
Cryptocurrency, especially Bitcoin, has proven to be a popular trading vehicle due to its volatility that allows traders to make money on the price fluctuations. However it’s Bettinger’s comments on crypto that are likely to generate the most excitement.
“We are looking very closely and, I think, cautiously at the cryptocurrency market,” CEO Walt Bettinger said in response to an analyst’s question. “We can certainly see some of the client excitement, particularly with certain segments of the market.
“I would expect as greater clarity is recognized potentially by regulators, that we would consider offering capabilities in the crypto space,” Bettinger said. “If Charles Schwab, the company, decides to participate in the crypto market, we will be highly competitive, we will be disruptive and we will be client oriented.”
He also shared that Schwab will have more to say over the next year on additional services such as thematic investing and direct-index investing. Traditional brokers have the advantage of offering a wide selection of investible securities, though typically you can’t trade Bitcoin directly, only futures.
On the other hand, crypto exchanges are limited to digital currencies, though you can own the currencies directly and can often buy several, rather than simply Bitcoin or Bitcoin futures, as you would with a general broker. Recently PayPal, Tesla, Goldman Sachs, and Visa all have gotten in on the act, allowing U.S. users to buy and sell and make payments with cryptocurrencies.
Currently, Schwab offers indirect ways to invest in crypto, including buying shares of companies in the industry, such as Coinbase, or those with cryptocurrency on their balance sheets, such as Tesla.
“Of course, we’re keeping our eyes closely on whether there will be investment-oriented product, whether it be ETF or others that will be delivering crypto investing to a larger part of the market,” Bettinger said.
