Charles Schwab Opens Bitcoin and Ether Trading to Retail Clients for First Time
Charles Schwab opens spot bitcoin and ether trading to retail clients today for the first time in the firm's history, as JPMorgan quietly files for its second ethereum-based tokenized money market fund and the Senate prepares to mark up the most sweeping crypto market structure legislation since the GENIUS Act. BitGo Holdings and DeFi Development Corp. both report Q1 earnings after the close, and Strategy's Michael Saylor takes the stage at 5 PM ET for a live retail Q&A that traders will be parsing for any signal on the pace of future bitcoin accumulation. Stay up on the crypto news that matters with "Crypto Currents," daily from The Fly. Join us at 2 PM ET for your essential briefing on the fast-moving world of cryptocurrency on FlyCast radio.SCHWAB CRYPTO GOES LIVE TODAY:Charles Schwabofficially opened Schwab Crypto to its first wave of eligible U.S. retail clients this morning,via its dedicated crypto-trading webpage. The service offers direct bitcoinand ethertrading at a 75-basis-point flat fee via Schwab.com and its trading platform thinkorswim, with Charles Schwab Premier Bank as custodian and Paxos handling sub-custody and execution. The launch covers all U.S. states except New York and Louisiana, targeting approximately 38M-39M brokerage accounts and approximately $11.8T in client assets.Schwab is the single largest traditional finance on-ramp to spot bitcoin and ether for retail by account count, a structural shift that puts direct competitive pressure on Coinbase, Robinhood Markets, and PayPalacross the retail crypto distribution landscape.BITCOIN RECLAIMS $81K:Bitcoin bounced to approximately $81,200 Wednesday morning as traders positioned ahead of President Trump's arrival in Beijing for talks with President Xi covering trade and AI. Nvidia'sJensen Huang joined the delegation alongside Elon Musk of Tesla, Tim Cook of Apple, and Larry Fink of BlackRockas a last-minute addition. Bitcoin's 200-day exponential moving average at approximately $82,037 and the 61.8% Fibonacci retracement at $83,437 remain the confirmed breakout triggers for the next leg higher.that Strategy'sSTRC perpetual preferred stock structure unlocks capacity to purchase approximately 3,127 bitcoin, approximately $253M at $81K, within this two-day window. Saylor and CEO Phong Leat 5:00 PM ET today on X and YouTube. any forward guidance on additional purchases will be a direct price catalyst for Strategy's preferred instruments.BITGO AND DEFI DEVELOPMENT:BitGo Holdingsreports Q1 results after the close today with an earnings call at 5:00 PM ET,via a press release. BitGo is the first publicly listed pure-play institutional crypto infrastructure company offering custody, wallets, staking, trading, financing, and stablecoin services from regulated cold storage via its federally chartered BitGo Bank & Trust, NA. Revenue and custody AUM growth will set the tone for the broader institutional crypto services sector.DeFi Development Corp.also reports Q1 results after the close at approximately 4:15 PM ET with a video update from CEO Joseph Onorati and CFO John Han,. DeFi Development Corp. is the first U.S. public company with a treasury strategy built to accumulate and compound solana. Any new solana purchases disclosed are the key metric alongside NAV versus share price spread.JPMORGAN TOKENIZED MMF AND INFRASTRUCTURE:JPMorganAsset Management filed with the SEC for the JPMorgan OnChain Liquidity-Token Money Market Fund, which issues ethereum-based tokens representing a portfolio of U.S. Treasuries and repo agreements structured to comply with the GENIUS Act,. The filing follows JPMorgan's MONY fund and coincides with a Bloomberg feature on the firm's $13T repo market blockchain integration, underscoring ethereum's growing role as institutional settlement infrastructure.Eightco Holdingsof approximately $340M, including 277M+ Worldcointokens representing about 9% of circulating supply, 11,000+ ether, a $90M OpenAI equity stake, and $25M in Beast Industries equity.PRICE ACTION:As of time of writing, bitcoin was trading at $78,806.03, while ether was trading at $2,233.17,.
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Charles Schwab Reports Record Trading Activity in April
- Record Trading Volume: Charles Schwab reported a daily average trading volume of 10.3 million in April, marking a historic high that indicates a significant increase in client activity, despite a cautious market sentiment.
- Client Margin Loan Balances: Client margin loan balances reached $136.0 billion, up 21% from the end of 2025, setting another record and demonstrating strong demand for leveraged investments among clients.
- Core New Assets Decline: Core net new assets plummeted 91% month-over-month to $7.2 billion from $79.7 billion in March, although this represents a 167% year-over-year increase, reflecting the impact of market volatility on client investment decisions.
- Total Client Assets Growth: Total client assets grew to $12.61 trillion, increasing 7% month-over-month and 27% year-over-year, showcasing Schwab's ongoing growth potential in asset management.
Charles Schwab Highlights AI Potential at Investor Day
- Value and Growth Coexist: CEO Rick Wurster stated that while Schwab's stock has only risen 5.7% this year, it is growing like a growth stock, demonstrating the company's competitive position in the market.
- Strategic Importance of AI: Schwab views artificial intelligence as a key tool for deepening client relationships and attracting new clients, enabling the company to offer personalized services to a larger client base.
- Growth Opportunities in Workplace Platform: Schwab leads in the registered investment advisor sector with total client assets of $12.6 trillion, and the CEO noted significant growth potential in the workplace platform, which may require substantial investments to capitalize on.
- Financial Management and Innovation Investment: CFO Mike Verdeschi emphasized that Schwab will maintain financial discipline while leveraging existing resources for growth and innovation investments, ensuring more durable earnings across various market environments.
DTCC Secures SEC Approval for New Clearing Model
- New Clearing Model Launch: DTCC received SEC approval on Wednesday to introduce the “Agent Clearing Member Customer Net Margin Account,” allowing stock loan firms to meet net margin requirements across multiple client positions, thereby enhancing capital efficiency and balance sheet flexibility.
- Risk Management Framework Maintained: The new model aligns with the current operations of the securities financing market while maintaining NSCC’s existing risk management framework, which is expected to encourage broader use of central clearing, reduce counterparty risk, and improve operational efficiency.
- Market Stability Support: The implementation of this model aids in supporting market stability during volatile periods; Managing Director John Vinci noted that it changes the economics of central clearing by allowing margin netting across customer positions, helping firms enhance capital usage and balance sheet efficiency.
- Wide Range of Beneficiaries: This approval could benefit major securities lending, custody, and prime brokerage firms, including Goldman Sachs, Morgan Stanley, and JPMorgan Chase, all of which are active in securities financing, clearing, and collateral markets, further driving industry growth.
SpaceX IPO Set to Make History with Potential $2 Trillion Valuation
- Market Performance: SpaceX's stock closed at $634.05 on Forge Global, reflecting a 215% increase over the past year and valuing the company at $1.51 trillion, indicating strong market demand.
- Funding Goals: The IPO is projected to target a valuation between $1.75 trillion and $2 trillion, aiming to raise $75 billion, which would make it one of the largest IPOs in history, surpassing Saudi Aramco's $29.4 billion.
- Historical Lessons: Despite SpaceX's leadership in AI and the space economy, historical data shows that many high-valuation IPOs perform poorly post-listing, with an average decline of about 10% over six months, urging caution among investors.
- Sales Data: SpaceX reported sales between $15 billion and $16 billion last year, yet its projected price-to-sales ratio is expected to exceed 30, suggesting potential bubble risks, which may lead retail investors chasing the IPO to face disappointment.
Teen Investment Awareness Significantly Rising
- Teen Investment Interest: According to recent data from Charles Schwab, 70% of teenagers aged 13-17 express a strong interest in investing, indicating a growing desire for financial knowledge among the younger generation, which could drive future market activity.
- Parental Support for Education: Nearly 75% of parents believe it is crucial for teens to learn about investing, reflecting a strong emphasis on financial education within families, which may lead to more rational and mature financial decisions by teens in the future.
- Knowledge Gap in Investing: Despite high interest, only 14% of teens report having a deep understanding of investing, highlighting a lack of education and information that could expose them to greater risks and uncertainties in their investment endeavors.
- Innovative Investment Platforms: Schwab's introduction of the Teen Investor account allows teens to co-own a brokerage account with their parents, enabling direct investments in stocks and ETFs, providing young individuals with practical investment experience while enhancing family involvement in financial education.
Warning on Value Traps from Low P/E Ratios
- P/E Ratio Misleading: According to Charles Schwab's research, the S&P 500's P/E ratio is near 26, significantly above the long-term median of 18, indicating that stocks are broadly priced at a premium to earnings, prompting investors to be wary of potential value traps associated with low P/E ratios.
- Value Trap Analysis: Schwab emphasizes that a low P/E does not automatically indicate undervaluation, as it may reflect market expectations of declining earnings or weakened competitive positions, necessitating careful fundamental assessment to avoid losses.
- Market Sentiment Impact: The research highlights that investor optimism and pessimism can independently affect P/E ratios, leading to significant valuation discrepancies for companies with identical earnings, underscoring the need to consider market sentiment when evaluating stocks.
- High P/E Ratio Risks: Schwab warns that stocks with extremely high P/E ratios pose increased risks during bull markets, as investor optimism can lead to rapid price declines; historical data shows that stocks with P/E ratios near 40 experienced a 49% crash following the dot-com bubble.
Charles Schwab Reports Record Trading Activity in April
- Record Trading Volume: Charles Schwab reported a daily average trading volume of 10.3 million in April, marking a historic high that indicates a significant increase in client activity, despite a cautious market sentiment.
- Client Margin Loan Balances: Client margin loan balances reached $136.0 billion, up 21% from the end of 2025, setting another record and demonstrating strong demand for leveraged investments among clients.
- Core New Assets Decline: Core net new assets plummeted 91% month-over-month to $7.2 billion from $79.7 billion in March, although this represents a 167% year-over-year increase, reflecting the impact of market volatility on client investment decisions.
- Total Client Assets Growth: Total client assets grew to $12.61 trillion, increasing 7% month-over-month and 27% year-over-year, showcasing Schwab's ongoing growth potential in asset management.
Charles Schwab Highlights AI Potential at Investor Day
- Value and Growth Coexist: CEO Rick Wurster stated that while Schwab's stock has only risen 5.7% this year, it is growing like a growth stock, demonstrating the company's competitive position in the market.
- Strategic Importance of AI: Schwab views artificial intelligence as a key tool for deepening client relationships and attracting new clients, enabling the company to offer personalized services to a larger client base.
- Growth Opportunities in Workplace Platform: Schwab leads in the registered investment advisor sector with total client assets of $12.6 trillion, and the CEO noted significant growth potential in the workplace platform, which may require substantial investments to capitalize on.
- Financial Management and Innovation Investment: CFO Mike Verdeschi emphasized that Schwab will maintain financial discipline while leveraging existing resources for growth and innovation investments, ensuring more durable earnings across various market environments.
DTCC Secures SEC Approval for New Clearing Model
- New Clearing Model Launch: DTCC received SEC approval on Wednesday to introduce the “Agent Clearing Member Customer Net Margin Account,” allowing stock loan firms to meet net margin requirements across multiple client positions, thereby enhancing capital efficiency and balance sheet flexibility.
- Risk Management Framework Maintained: The new model aligns with the current operations of the securities financing market while maintaining NSCC’s existing risk management framework, which is expected to encourage broader use of central clearing, reduce counterparty risk, and improve operational efficiency.
- Market Stability Support: The implementation of this model aids in supporting market stability during volatile periods; Managing Director John Vinci noted that it changes the economics of central clearing by allowing margin netting across customer positions, helping firms enhance capital usage and balance sheet efficiency.
- Wide Range of Beneficiaries: This approval could benefit major securities lending, custody, and prime brokerage firms, including Goldman Sachs, Morgan Stanley, and JPMorgan Chase, all of which are active in securities financing, clearing, and collateral markets, further driving industry growth.
SpaceX IPO Set to Make History with Potential $2 Trillion Valuation
- Market Performance: SpaceX's stock closed at $634.05 on Forge Global, reflecting a 215% increase over the past year and valuing the company at $1.51 trillion, indicating strong market demand.
- Funding Goals: The IPO is projected to target a valuation between $1.75 trillion and $2 trillion, aiming to raise $75 billion, which would make it one of the largest IPOs in history, surpassing Saudi Aramco's $29.4 billion.
- Historical Lessons: Despite SpaceX's leadership in AI and the space economy, historical data shows that many high-valuation IPOs perform poorly post-listing, with an average decline of about 10% over six months, urging caution among investors.
- Sales Data: SpaceX reported sales between $15 billion and $16 billion last year, yet its projected price-to-sales ratio is expected to exceed 30, suggesting potential bubble risks, which may lead retail investors chasing the IPO to face disappointment.
Teen Investment Awareness Significantly Rising
- Teen Investment Interest: According to recent data from Charles Schwab, 70% of teenagers aged 13-17 express a strong interest in investing, indicating a growing desire for financial knowledge among the younger generation, which could drive future market activity.
- Parental Support for Education: Nearly 75% of parents believe it is crucial for teens to learn about investing, reflecting a strong emphasis on financial education within families, which may lead to more rational and mature financial decisions by teens in the future.
- Knowledge Gap in Investing: Despite high interest, only 14% of teens report having a deep understanding of investing, highlighting a lack of education and information that could expose them to greater risks and uncertainties in their investment endeavors.
- Innovative Investment Platforms: Schwab's introduction of the Teen Investor account allows teens to co-own a brokerage account with their parents, enabling direct investments in stocks and ETFs, providing young individuals with practical investment experience while enhancing family involvement in financial education.
Warning on Value Traps from Low P/E Ratios
- P/E Ratio Misleading: According to Charles Schwab's research, the S&P 500's P/E ratio is near 26, significantly above the long-term median of 18, indicating that stocks are broadly priced at a premium to earnings, prompting investors to be wary of potential value traps associated with low P/E ratios.
- Value Trap Analysis: Schwab emphasizes that a low P/E does not automatically indicate undervaluation, as it may reflect market expectations of declining earnings or weakened competitive positions, necessitating careful fundamental assessment to avoid losses.
- Market Sentiment Impact: The research highlights that investor optimism and pessimism can independently affect P/E ratios, leading to significant valuation discrepancies for companies with identical earnings, underscoring the need to consider market sentiment when evaluating stocks.
- High P/E Ratio Risks: Schwab warns that stocks with extremely high P/E ratios pose increased risks during bull markets, as investor optimism can lead to rapid price declines; historical data shows that stocks with P/E ratios near 40 experienced a 49% crash following the dot-com bubble.
