Charles Schwab to Launch Spot Bitcoin and Ether Trading for Retail Customers This Year
Charles Schwab CEO Rick Wurster has confirmed the brokerage firm will offer spot Bitcoin and Ether trading directly to retail customers by the end of 2026. The announcement marks a significant expansion of traditional brokerage access to cryptocurrency, allowing Schwab's approximately 35 million retail accounts to buy and sell Bitcoin and Ethereum directly through Schwab — without transferring funds to a dedicated crypto exchange like Coinbase or Kraken.
What "Spot" Trading Means and Why It Matters
Spot trading means customers will own the actual cryptocurrency — not a futures contract or an ETF share. This is materially different from Bitcoin ETFs like BlackRock's IBIT or Fidelity's FBTC, which provide price exposure without direct ownership. Spot crypto ownership allows customers to hold, transfer, or self-custody their coins, and it gives Schwab direct exposure to the crypto custody and trading fee revenue stream rather than competing solely on brokerage commissions. For many retail investors, having spot crypto available inside their existing brokerage account eliminates the activation energy barrier of creating a separate exchange account.
The Competitive Landscape
Schwab entering spot crypto trading follows moves by Fidelity, which has offered Bitcoin custody and trading since 2018, and Robinhood, which has long offered spot crypto for retail users. Traditional brokerages have been cautious about spot crypto due to regulatory uncertainty — the SEC's prior stance on crypto classification created compliance risk that has eased significantly since early 2025. With the regulatory environment more favorable, Schwab's announcement reflects a calculated decision that the compliance risk is now manageable relative to the revenue opportunity.
What Happens to Crypto ETF Products
Schwab currently offers Bitcoin and Ether ETFs to customers. Spot trading does not replace ETFs — they serve different investor preferences around tax treatment, self-custody, and account types. IRA accounts holding crypto ETFs have different rules than spot crypto in taxable accounts. Both products will likely coexist, with spot trading capturing customers who want actual ownership and ETFs remaining preferred for retirement account exposure.
The Bottom Line
Schwab offering spot Bitcoin and Ether trading is the brokerage industry's clearest institutional endorsement yet that crypto is a permanent asset class in retail portfolios. With 35 million accounts as potential customers, Schwab's entry materially expands the addressable market for spot crypto — and raises competitive pressure on crypto-native exchanges to differentiate on what traditional brokerages cannot offer.
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