Charles Schwab has announced the rollout of direct spot trading for Bitcoin and Ethereum within its brokerage platform, which currently manages $11.9 trillion in client assets. As of Wednesday, Bitcoin is trading near $78,100, while Ethereum is around $2,320. The plan to introduce this feature was initially detailed by Nate Geraci during an April 16 announcement, marking a pivotal moment for retail cryptocurrency trading on Wall Street since the approval of spot Bitcoin ETFs by the SEC two years ago.
The entry into crypto trading comes with a fee of 75 basis points on the dollar value of each trade. This has prompted some analysts—like Bloomberg’s senior ETF analyst Eric Balchunas—to recommend that clients should continue investing in ETFs instead, citing the more favorable fee structures associated with them. Schwab’s new service allows clients to view their cryptocurrency holdings alongside traditional investments, bridging the gap between digital and traditional assets.
P2P.org, an institutional staking firm, characterized Schwab’s move as more than just a product launch, calling it a “distribution event.” This initiative enables the extensive Schwab advisor network to incorporate digital assets into client portfolios, utilizing the existing custody and compliance infrastructure. With 38.5 million active brokerage accounts reported in Schwab’s Q4 2025 disclosures, the service could significantly alter how retail investors diversify their portfolios.
The competitive landscape has intensified, especially with platforms like Robinhood, which are reportedly growing at a faster pace. Anthony Pompliano of ProCap Financial suggested that Schwab’s strategy is a defensive reaction to this competitive pressure rather than an aggressive market capture. He noted that major players like Coinbase and Kraken will need to enhance their offerings to remain competitive against Schwab’s integrated approach that includes personalized advisor support.
Despite the positive outlook, not every expert is sold on Schwab’s direct trading offering. Analysts like Balchunas argue that the trading fees make it a less appealing option compared to spot Bitcoin ETFs, particularly for long-term investors. He pointed out that if investors are merely looking to purchase Bitcoin for long-term holding, the direct option could be cheaper, but for frequent trades, ETFs would be the better route.
As this initiative develops, critical questions remain, such as whether Schwab will permit withdrawals to self-custody wallets—a feature that could influence long-term holders’ choices between Schwab and existing crypto exchanges. Also in question is whether Schwab will expand its offerings beyond Bitcoin and Ethereum, as initially hinted.
As the market observes the efficacy of Schwab’s trading strategy, particularly in comparison to traditional ETFs, the upcoming earnings announcements will provide insights into whether this major brokerage can effectively attract flows into Bitcoin and Ethereum, or if established ETFs will remain the dominant force in the space.
