Charles Schwab Eyes $12 Trillion Institutional Base with New Crypto ETF Push

Source: DefiPlanet Original Title: Charles Schwab Eyes $12 Trillion Institutional Base with New Crypto ETF Push Original Link:

Quick Breakdown

• US asset manager Charles Schwab plans to offer cryptocurrency exchange-traded funds for its $12 trillion institutional base.
• BlackRock’s spot Bitcoin ETFs hold $65 billion in assets, driving mainstream demand from pension funds.
• Regulatory shifts accelerate traditional finance integration with digital assets.

TradFi Giants Race into Crypto

US asset manager Charles Schwab plans to offer cryptocurrency exchange-traded funds for its $12 trillion institutional base. The move comes amid surging demand for spot crypto products, with BlackRock’s iShares Bitcoin Trust now managing over $65 billion in assets. Schwab executives confirmed internal discussions on crypto ETFs during a recent investor call, citing client pressure from endowments and family offices seeking regulated exposure.

Schwab, which already provides exposure through Bitcoin and Ethereum futures, ETFs, and its crypto-themed exchange-traded products, will become the first mega-brokerage to custody and allow retail and advisory clients to make direct spot purchases of the two largest cryptocurrencies.

Industry observers say the entry of a household name with 35 million active brokerage accounts could dramatically accelerate mainstream adoption. Analysts at Bernstein estimate that brokerages moving on-chain could unlock $500 billion to $1 trillion of incremental institutional and retail inflows over the next three years.

Rival platforms took notice immediately. Shares of certain major crypto exchanges fell in after-hours trading on fears of intensified fee competition. Schwab is expected to price crypto trades near its $0 stock-commission model, putting severe pressure on centralized exchanges that currently charge 20-60 basis points per trade.

The announcement comes amid a broader Wall Street embrace of digital assets in 2025, with Fidelity, BlackRock, and BNY Mellon all expanding crypto offerings following more explicit regulatory guidance from the SEC and OCC. For millions of Schwab clients who have waited years to watch Bitcoin and Ethereum from the sidelines, direct access is now less than six months away.

Regulatory Tailwinds Fuel ETF Expansion

Pro-crypto regulatory shifts have reduced resistance to digital assets, clearing the way for 15 new spot ETFs, now including Ethereum and Solana. Pension funds, which had zero exposure a year ago, are now putting 1-2% into Bitcoin through Schwab’s brokerage platforms. Analysts say this could be just the beginning, with traditional finance potentially pouring as much as $200 billion into crypto by 2026 as big custodians like Schwab move toward on-chain settlement. Recent bank-backed trading launches underscore the broader pivot by financial institutions, with 60% of retail members demanding digital assets.