Schwab Crypto Opens Doors to Digital Assets Trading
Schwab Crypto has made it easier for investors to access Bitcoin and Ethereum trading through its platform, which offers direct access to these digital assets at a competitive price of 75 basis points on the dollar value of each trade.
Clients can view and trade digital assets alongside traditional holdings via Schwab.com or thinkorswim, with Paxos delivering sub-custody and trade execution services. Investors use spot Bitcoin ETFs like IBIT, FBTC, or GBTC to gain price exposure without managing private keys or navigating cryptocurrency exchanges.
These spot funds hold actual Bitcoin in cold storage to track the market price, but due to a grantor trust structure, selling small amounts of Bitcoin to cover sponsor fees can result in taxable gains or losses for investors. This sale creates phantom income.
Roth IRAs can be funded with Bitcoin ETF exposure, provided income falls below IRS limits, which are $153,000-$168,000 for single filers and $242,000-$252,000 for joint filers in 2026. However, the IRS prohibits direct transfers of cryptocurrencies from personal wallets into retirement accounts, so investors must use cash for purchases.