Schwab Plans Spot Crypto Trading by 2026, Bitcoin Rises 3.2%

Charles Schwab, one of the world’s largest asset managers, has announced plans to offer spot cryptocurrency trading within the next year. The company's CEO, Rick Wurster, revealed during a recent earnings call that Schwab is "hopeful and likely" to allow for direct crypto transactions by mid-2026. This move will include Bitcoin and Ethereum, positioning Schwab among traditional financial giants entering the cryptocurrency space.

The decision comes as public interest in cryptocurrencies continues to grow. Other major financial institutions, such as Morgan Stanley, have also unveiled plans to offer crypto trading to their clients. This trend is driven by anticipation of positive regulatory changes and the increasing demand from investors who are becoming more interested in digital assets.

Schwab’s crypto offer is targeted at investors who already participate in traditional markets but are looking to diversify their portfolios with digital assets. The company has observed a significant increase in traffic to its crypto-related content, with potential new clients comprising 70% of these visitors. This indicates a growing interest in cryptocurrencies among Schwab’s client base.

The announcement triggered an immediate market reaction, with Bitcoin and Ethereum prices soaring. Bitcoin rose by 3.2%, increasing from around $58,400 to $60,270 within an hour of the announcement. Ethereum followed a similar path, rising 2.8% to $2,981. These increases were followed by significant spikes in volume, with Bitcoin’s 24-hour volume increasing 18% and Ethereum’s rising 15%.

Schwab’s move to offer direct access to cryptocurrencies is a cautious approach that should appeal to conservative investors interested in obtaining controlled exposure rather than excessive speculation. The offering will be geared toward people wanting fractional amounts of popular cryptocurrencies, not the universe of other choices called altcoins. This strategy aligns with the broader trend of institutional investors driving U.S. crypto market growth.

Analysts anticipate Schwab’s platform launch to generate significant inflows into markets for crypto. Trading activity has already reflected increased confidence, with a 25% rise in BTC call options over the $65,000 strike price and a 10% increase in trading activity for BTC/USD and ETH/USD pairs. This indicates that traders are feeling bullish about the future of cryptocurrencies.

Recent U.S. regulatory discussions have been interpreted as boosting institutional confidence in the crypto market. However, Wurster cautioned that volatility and allocation issues still pose risks. International regulatory discussions could also boost cross-border involvement, but the extreme volatility of cryptocurrencies means that it remains a risk for investors.

Schwab is broadening its core brokerage business with an investment in the proposed Texas Stock Exchange (TXSE), designed to compete with Nasdaq and the NYSE once approved by year-end. Wurster believes that providing more options for investors—either with new exchanges or on crypto platforms—is important for long-term growth. Schwab’s scale and established platform make it poised to build a bridge between traditional finance and digital assets as crypto becomes more mainstream.