$3.2T Asset Manager Charles Schwab, Not Venturing Into Crypto Yet; Calling Them “Pure Speculation”
The largest investment broker in the US which controls over $3.2 trillion worth of assets has stated that it will not venture into cryptocurrencies in the near future, Cointelegraph reports.
According to the firm, there are no plans to provide its clients with direct crypto trading services at the moment. Rob Farmer, the company’s managing director for corporate communications, explained that currently investors should perceive cryptocurrencies as speculative instruments.
The revelations comes months after the company’s president Walt Bettinger asked for time after being asked whether his firm would be part of the governance consortium for Libra stablecoin. Bettinger stated that such a question should be asked in the future.
While Schwab has maintained a low profile when it comes to cryptos, investment experts opine that the firm will one day be part of the crypto industry probably through an acquisition. One expert who believes that its just a matter of time before the investment giant enters the market is Celent’s senior analyst, Will Trout. The analyst stated that Schwab will soon be forced to enter the crypto space but probably in a small manner such as a custodian of customers’ digital assets or buy a portion of an existing exchange.
Another analyst, Lex Sokolin who is the current global co-head for financial technology at ConsenSys, is of the view that conventional investment companies enjoy a long-term advantage at the moment since they can purchase for cheap.
Gabriel Wang an analyst from Aite financial group argues that the nascent cryptocurrency industry which has a market cap of about $300 billion accounts for less than a tenth of the total Schwab’s $3.2 trillion worth of assets under its management and about 1% of the total equity in the US. in this case, Wang says that at the moment the crypto market is too small for a behemoth like Schwab and its justified to adopt a wait and see approach.
Block reports that while Schwab is not eager to venture into the crypto industry at the moment, its arch rival Fidelity is already offering Bitcoin trading as well as custodial services.