Bitcoin Welcomes Charles Schwab

Disclaimer: Your capital is at risk. This is not investment advice.

ByteFolio Issue 206;

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This issue covers Aave (AAVE).

Bitcoin’s ByteTrend Score holds a 3, but it is starting to look more convincing. The price has made a post-February high, and the max line is rising. The 200-day moving average is closing in and is just 9% away.

Bitcoin

Bitcoin and Gold maintain their low correlation, with performance starting to look inverse once again. Big picture, Bitcoin is undervalued following five years of soft performance, as that captures the peak of the last cycle. In 2025, Gold had its best year since 1979 and is now cooling. With $535 billion in Gold ETFs and $111 billion in Bitcoin ETFs, expect to see some of those funds switch across.

Bitcoin vs Gold

The Bitcoin vs Nasdaq chart is crucial for Bitcoin. In the April rally, the Nasdaq has made a new all-time high, and Bitcoin is keeping pace. Outperformance would be better, but at least it isn’t lagging. Asset allocators will buy Bitcoin as they become more confident that it will perform.

Bitcoin vs Nasdaq

That point can be clearly illustrated, as when Bitcoin is beating the Nasdaq, the Bitcoin ETF flows pick up. When Bitcoin lags, they hold most of their inventory. This is another reason why Bitcoin’s long-term volatility is falling, as the buyers HODL. Notice how the flows have started to pick up again (red).

Bitcoin Excess Return vs ETF Flows

ByteFolio’s titles in recent weeks have welcomed Morgan Stanley, for their ETF launch ($156m aum in two weeks) and Goldman Sachs, who intend to launch a covered call product. The latest major financial firm to embrace the space is Charles Schwab.

Schwab is one of the largest US retail brokerages, and although they have offered Bitcoin ETFs, they are moving into spot trading. The rollout will be phased and will be offered through Charles Schwab Premier Bank, with execution handled in partnership with Paxos. The clients are deemed to be boomers by the crypto space, but it will put pressure on the likes of Robinhood, which will no longer have a free ride.

These three entrants into crypto are huge and mark a major turning point for traditional finance to engage in the space. While the US is moving quickly, Europe and Asia are in the slow lane, but regulators are taking notice. There’s nothing like the financial establishment giving its seal of approval for the space to be taken more seriously.

The big money is coming.

Bitcoin Welcomes Charles Schwab