Charles Schwab's Current Crypto Offerings
Charles Schwab does not offer direct cryptocurrency buying, selling, or holding through your brokerage account. You cannot purchase Bitcoin, Ethereum, or other cryptocurrencies the way you would buy stocks or ETFs on their platform. However, Schwab does offer crypto-linked investment products — mainly exchange-traded funds (ETFs) and futures contracts — that let you gain exposure to cryptocurrency price movements without owning the coins themselves.
The distinction matters because it changes how you own crypto exposure, what fees you pay, and what tax forms you receive. A crypto ETF is a fund that tracks cryptocurrency prices and trades like a stock. A futures contract is a bet on where a cryptocurrency's price will go. Neither gives you actual coins to transfer or store.
Key Takeaways
- Charles Schwab offers crypto ETFs and futures contracts but does not let you buy or hold actual Bitcoin or other cryptocurrencies in your account.
- Crypto ETFs trade during regular stock market hours and hold actual cryptocurrency or track its price, making them simpler than futures for most investors.
- Futures contracts require more experience and margin, and they settle daily rather than holding a position indefinitely.
- If you want to own actual cryptocurrency, you will need a separate account at a crypto exchange like Coinbase or Kraken.
Crypto ETFs Available Through Schwab
Schwab lets you buy spot Bitcoin ETFs and spot Ethereum ETFs through your regular brokerage account. A spot ETF holds the actual cryptocurrency — the fund owns real Bitcoin or Ethereum, and the ETF price tracks what those coins are worth. This is different from older crypto ETFs that used futures contracts, which can behave differently from the actual coin price.
You trade these ETFs during stock market hours (9:30 a.m. to 4 p.m. Eastern, Monday through Friday), just like any other fund. You pay Schwab's standard commission (usually zero for most investors) plus the ETF's expense ratio, which is the annual fee the fund charges. Spot crypto ETFs typically charge between 0.2% and 0.25% per year, which is much lower than the fees at most crypto exchanges.
The tax treatment is also simpler than owning actual crypto. You receive a standard 1099 form at tax time, the same as any stock or fund sale. You do not have to track individual transactions the way you would if you bought and sold coins on an exchange.
Crypto Futures Contracts at Schwab
Schwab also offers Bitcoin and Ethereum futures contracts through its futures trading platform. A futures contract is an agreement to buy or sell a cryptocurrency at a set price on a future date. You do not own the actual coin — you are betting on its price direction. Futures settle daily, meaning your profit or loss is calculated and your account is adjusted every single day the market is open.
Futures require a margin account and a higher minimum deposit than regular stock trading. They also require more experience because you can lose more money than you put in if the price moves sharply against you. Most individual investors who are new to trading should not use futures. If you are considering them, Schwab requires you to pass a futures trading assessment first.
Futures contracts trade nearly 24 hours a day, five days a week, which is an advantage if you want to trade outside regular stock market hours. But they are more complex to understand and more expensive to trade if you make mistakes.
Why Schwab Does Not Offer Direct Crypto Ownership
Schwab's decision to avoid direct cryptocurrency custody comes down to regulation and liability. Holding actual cryptocurrency requires secure storage (called custody), insurance against theft or loss, and compliance with rules that are still being written by the SEC and other regulators. Schwab is a traditional brokerage firm regulated as a securities dealer, not a crypto exchange, so offering direct crypto custody would require building entirely new infrastructure and accepting new legal risks.
Crypto ETFs and futures let Schwab offer crypto exposure within its existing regulatory framework. The ETF provider or futures exchange handles the custody and regulatory compliance, and Schwab simply lets you trade these products like any other investment.
How to Buy Actual Cryptocurrency if You Want It
If you want to own real Bitcoin, Ethereum, or other coins, you will need a separate account at a cryptocurrency exchange. Major exchanges include Coinbase, Kraken, Gemini, and Crypto.com. You fund these accounts with dollars from your bank, buy the cryptocurrency, and can hold it in your exchange account or transfer it to a personal crypto wallet.
Exchanges charge trading fees (usually 0.5% to 2% per transaction) and may charge withdrawal fees if you move coins to your own wallet. They also require you to manage your own security — if you lose your password or someone hacks your account, the exchange usually cannot recover your coins. This is very different from a brokerage account, where Schwab is responsible for keeping your money safe.
Some people use both: they hold crypto ETFs in their Schwab account for simplicity and tax efficiency, and they hold actual coins on an exchange if they want to trade frequently or use cryptocurrency for transactions.
Comparing Your Options at Schwab
| Option | What You Own | Trading Hours | Complexity | Typical Fees |
|---|---|---|---|---|
| Spot Crypto ETF | Fund holding actual coins | 9:30 a.m.–4 p.m. ET, weekdays | Low — trades like a stock | 0.2%–0.25% annually |
| Crypto Futures | Price contract, not coins | Nearly 24/5 | High — requires margin and experience | Per-contract commission plus spread |
| Actual Crypto (via exchange) | Real coins you control | 24/7 | Medium — requires exchange account setup | 0.5%–2% per trade plus withdrawal fees |
Frequently Asked Questions
Can I transfer Bitcoin or Ethereum I own elsewhere into my Schwab account?
No. Schwab does not accept cryptocurrency deposits or transfers. If you own coins on another exchange or in a personal wallet, you cannot move them into Schwab. You would have to sell them on the exchange where you hold them, transfer the dollars to Schwab, and then buy a crypto ETF if you want crypto exposure in your Schwab account.
Are crypto ETFs safer than buying actual cryptocurrency?
They are safer in one specific way: Schwab is responsible for keeping your money secure, just as it is for stocks. If Schwab fails or is hacked, your account is protected by SIPC insurance up to $500,000. With actual cryptocurrency on an exchange, you are responsible for your own security, and most exchanges offer limited insurance. However, crypto ETFs do not give you the ability to transfer coins or use them for transactions.
Do I pay capital gains tax differently on crypto ETFs versus actual cryptocurrency?
Crypto ETFs are taxed like any stock or fund — you report gains or losses when you sell, and you receive a standard 1099 form. Actual cryptocurrency is also taxed as a capital asset, but you have to track every single transaction yourself and report it to the IRS. The tax outcome is the same, but the record-keeping is much simpler with an ETF.
What happens if the crypto exchange that backs a Schwab crypto ETF goes out of business?
The ETF provider (not Schwab) holds the actual cryptocurrency in custody, usually with a specialized crypto custodian. If the exchange that created the ETF fails, the coins are still held separately and protected. The ETF would likely be transferred to a new provider or liquidated, but your coins would not disappear. This is one reason crypto ETFs are considered safer than holding coins on a single exchange.