'Distribution Event'—Schwab Crypto Targeting $12T Bitcoin Buyers

Charles Schwab has begun phasing in direct spot trading of Bitcoin and Ether inside its brokerage — a potential “distribution event” that puts crypto alongside stocks and bonds for 38.5 million active accounts and within a platform that holds $11.9 trillion in client assets. The rollout could channel meaningful retail flows into BTC and ETH, challenging native exchanges like Coinbase and Kraken, but Schwab’s 75-basis-point trading fee makes the offering less attractive versus low-cost spot-BTC ETFs for many investors. Key open questions — whether Schwab permits withdrawals to self-custody and whether it expands past BTC/ETH — will determine if the move meaningfully shifts flows away from ETFs and native exchanges by Schwab’s next earnings call in July. Overall, the launch increases retail access and competition but its net impact on ETF inflows and long-term custody patterns is uncertain.