Vanguard, the world’s second-largest asset manager, has declared that it will not support the purchase of any spot Bitcoin ETFs launched recently. The firm has taken a conservative stance on cryptocurrencies, stating that they do not form part of a “well-balanced” investment portfolio. This position starkly contrasts with that of its main competitor, BlackRock, which has embraced Bitcoin.
Despite the Securities and Exchange Commission’s approval of several spot Bitcoin ETFs, Vanguard has chosen not to participate in the ETF hype. Customers who attempted to buy shares of a Bitcoin ETF on the day of launch were met with a message indicating that the trade could not be completed. The same message was displayed to those who tried to purchase a share of BlackRock’s IBIT. The message cited reasons such as regulatory restrictions, corporate actions, or trading and settlement limitations.
A representative from Vanguard explained that Bitcoin ETFs were not available on their platform due to their highly speculative and unregulated nature, which does not align with the company’s long-term investing philosophy. The representative also noted that Vanguard does not offer several other investments, such as leveraged ETFs, and has no plans to create a Bitcoin ETF of its own. The firm’s focus remains on asset classes such as equities, bonds, and cash, which it views as the building blocks of a well-balanced, long-term investment portfolio.
On the other hand, BlackRock, Vanguard’s main rival, has taken a different approach by launching its own spot Bitcoin ETF, which began trading under the ticker IBIT. BlackRock’s spot Bitcoin ETF led early trading after launch, with data suggesting that BlackRock’s and Fidelity’s spot Bitcoin ETFs had seen over $958 million in trading volume by 11:10 am EST on the day of launch.
Vanguard’s conservative stance mirrors that of the United States Securities and Exchange Commission Chair Gary Gensler. Despite the SEC’s approval of spot Bitcoin ETFs, Gensler warned that Bitcoin is primarily a speculative and volatile asset used for illegal activities such as money laundering, sanction evasion, and ransomware. He cautioned investors about the risks associated with Bitcoin and products whose value is tied to crypto.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | Gary Gensler |
| Companies | Vanguard, United States Securities and Exchange Commission, Fidelity, BlackRock |
| Currencies | Bitcoin |
| Securities | None |
