Vanguard Group, a prominent American investment management company, is currently under fire for reportedly denying customers’ requests to access and trade Spot Bitcoin ETFs on its platform. This decision has led to a mass exodus of customers, with many choosing to withdraw their funds and close their accounts permanently.
The recent approval of Spot Bitcoin ETFs on Wednesday, January 10, sparked a surge in trading activities among investors. Investment management companies like BlackRock have seen a significant increase in transactions. However, Vanguard customers were unable to participate in the trading process due to the company’s restrictions.
Vanessa Harris, a former Vanguard customer, voiced her frustration on X (formerly Twitter) about Vanguard’s limitations that prevent customers from trading Spot BTC ETFs on the platform. She stated, “Just fully transferred my retirement account from Vanguard Group to Fidelity because Vanguard won’t support Bitcoin ETFs, and appears to be manipulating the price of Bitcoin by only allowing people to sell GBTC, not buy.”
Another X user suggested that individuals withdraw from Vanguard and move to BTC-friendly alternatives like Fidelity to start their Spot Bitcoin ETF trades. Vanguard’s decision to stay on the sidelines of Spot Bitcoin ETFs is seen as a missed opportunity to cater to the evolving preferences of their customers. Despite the mass withdrawals, the investment management company has not indicated any intention to reconsider its current policy against Spot BTC ETFs.
Eric Balchunas, Senior ETF Analyst at Bloomberg, recently announced on X that Vanguard has banned all Spot BTC ETFs from their platform. Despite the growing popularity of cryptocurrency investments, Vanguard still does not endorse investments in BTC or other cryptocurrencies on its platform. The investment management company has a contentious relationship with cryptocurrencies, including BTC, the world’s largest cryptocurrency. In 2017, the late founder of Vanguard, John C. Bogle advised people to “avoid Bitcoin like a plague.”
Vanguard stated, “Spot Bitcoin ETFs will not be available for purchase on the Vanguard platform. We also have no plans to offer Vanguard Bitcoin ETFs or other crypto-related products.”
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | |
| Sentiment | very negative |
| Relevance Score | 1 |
| People | Vanessa Harris, Eric Balchunas, John C. Bogle |
| Companies | Bloomberg, Seeking Alpha, Vanguard Group, Fidelity, BlackRock |
| Currencies | Bitcoin |
| Securities | None |
