Charles Schwab has completed the rollout of Schwab Crypto: buying and selling
$BTC and
$ETH on the spot market for all eligible retail clients, according to CEO Rick Wurster (October 15 Fall Business Update).
What to check before placing your first order:
- Fees: 0.75% of the value of each purchase or sale, with no displayed spread (Schwab FAQ).
- Structure: a separate account at Charles Schwab Premier Bank; Paxos handles execution and sub-custody. The coins are not covered by either SIPC or FDIC insurance.
- Access: unavailable in New York, Louisiana, US territories, or internationally, and each application is subject to approval.
- Transfers: external wallet transfers are being rolled out gradually; a maximum of 3 withdrawals per 24 hours, up to $5,000 each.
- Coming next: SOL, AVAX, and LINK targeted by the end of 2026.
The key calculation: on $10,000 of BTC, a round trip costs $150 (2 × 0.75%). The IBIT ETF charges 0.25% per year, or about $25 a year at a constant price. So you’d need to hold for nearly 6 years for direct coin ownership to become cheaper, excluding the ETF spread, taxes, and network fees.
My take: this isn’t a tool for active traders. It’s an offering for people who want the actual coin, withdrawable to their own wallet, without leaving their bank. And the customer base is already there: Schwab clients held about 20% of spot crypto ETPs (Schwab’s April announcement).
Two possibilities going forward. If incoming transfers become widely available, Schwab could become a place to bring BTC back from exchanges. If usage remains marginal compared with ETFs, the 0.75% fee will soon face competition.
Market around 17:00 UTC (Binance): BTC ~$81,400, ETH ~$2,430.
Schwab clients, would you keep the ETF at 0.25% a year, or switch to direct coin ownership so you can withdraw it?
#Schwab #Bitcoin