Key Takeaways
- Charles Schwab plans to launch spot crypto trading within 12 months.
- Bitcoin and Ethereum prices surged following the announcement.
- Institutional adoption is expected to accelerate U.S. crypto market growth.
Table of Contents
Charles Schwab Joins Crypto Race with Spot Trading Rollout
Charles Schwab, one of the world’s largest asset managers with $7.13 trillion under management, is preparing to introduce spot cryptocurrency trading within the next 12 months. CEO Rick Wurster confirmed the firm’s strategy during a recent earnings call, stating that Schwab is “hopeful and likely” to enable direct crypto transactions by mid-2026. The rollout will focus on Bitcoin and Ethereum, positioning Schwab alongside other traditional financial giants entering the crypto sector.
The move comes as mainstream interest in cryptocurrencies intensifies. Morgan Stanley recently disclosed its intention to offer crypto trading for its e-trade clients, signaling a broader trend among U.S. financial institutions. Anticipation of favorable regulatory developments is further accelerating these efforts.
Schwab’s crypto offering is designed for investors who already engage in traditional markets but are increasingly intrigued by digital assets. According to Wurster, the company saw a 400% increase in traffic to its crypto-related content recently, with 70% of visitors being potential new clients.
Immediate Market Reaction: Bitcoin and Ethereum Prices Jump
The announcement triggered swift market movements. Bitcoin rose 3.2%, climbing from $58,400 to $60,270 within an hour of the news on May 1, 2025, based on CoinMarketCap data. Ethereum mirrored this trajectory, gaining 2.8% from $2,900 to $2,981.
These surges were accompanied by notable increases in trading volumes. Bitcoin’s 24-hour volume rose 18% to $32.4 billion, while Ethereum’s grew 15% to $14.7 billion, according to Binance market data. Liquidity also deepened significantly — Kaiko Analytics reported an average 12% improvement in liquidity depth for BTC/USDT and ETH/USDT pairs within two hours of the announcement.
This pattern is not unprecedented. Similar price jumps followed BlackRock’s announcement of a Bitcoin ETF filing in 2023, when BTC rallied 7% in a day. These historical parallels underline how institutional moves consistently impact crypto markets in the short term.
Schwab Investor Sentiment and Portfolio Diversification Trends
Schwab’s timing aligns with shifting investor behaviors. Following April’s stock market volatility — sparked partly by geopolitical tensions and U.S. tariff announcements — 61% of Schwab clients polled expressed bearish sentiment, up from 32% in Q1 2025.
Many investors have been repositioning their portfolios, trimming risk by selling U.S. equities and increasing allocations to bonds and non-U.S. stocks. Wurster emphasized that diversification has proven beneficial. Clients with exposure to international stocks, bonds, and commodities reported stronger resilience amid recent turbulence.
Crypto is increasingly seen as another avenue for diversification. Schwab’s introduction of direct crypto access is likely to appeal to cautious investors seeking measured exposure rather than heavy speculation. Wurster noted that Schwab’s platform will cater primarily to clients interested in owning small amounts of mainstream cryptocurrencies, not the broader spectrum of altcoins.
Schwab Projected Market Impact and Institutional Flows
Analysts expect Schwab’s platform launch to drive substantial inflows into crypto markets. A Bloomberg report on May 1, 2025, projected that up to $10 billion in new capital could enter the crypto sector within the first six months after Schwab’s launch.
Trading behavior has already reflected growing confidence. Data from Deribit on May 1 showed a 25% increase in BTC call options with strike prices above $65,000, signaling bullish sentiment. Kraken’s trading data confirmed a 10% rise in activity on BTC/USD and ETH/USD pairs, with bid-ask spreads narrowing — an indicator of improved market efficiency.
Moreover, Whale Alert reported a 14% surge in Bitcoin transactions over $1 million, suggesting institutional accumulation shortly after Schwab’s announcement.
Schwab Regulatory Environment Fuels Institutional Confidence
Wurster noted that regulatory signals from the Trump administration, including a proposed easing of crypto rules, are boosting institutional confidence. Similar clarity from the UK-U.S. crypto partnership is expected to spur cross-border participation. However, he cautioned that crypto’s volatility and allocation challenges still pose risks for investors.
Schwab’s Broader Strategy: Expanding Access and Competition
Beyond crypto, Schwab is diversifying its core business with an investment in the proposed Texas Stock Exchange (TXSE), set to challenge Nasdaq and NYSE if approved by year-end. Wurster sees expanding investor options — through new exchanges or crypto platforms — as key to long-term growth. Schwab’s scale and trusted platform position it to bridge traditional finance and digital assets as the crypto market matures.
