Vanguard Escalates Fight Against Bitcoin ETFs, Here’s What Happening
As the Bitcoin price comes under strong selling pressure after the ETF approval earlier this week, Vanguard is doubling down on its fight against the investment product. Earlier this week, Vanguard said that it won’t join other big players like BlackRock in offering Bitcoin ETFs.
Vanguard Doubles Down on No Crypto Stand
Vanguard is reinforcing its commitment to avoid cryptocurrency investments by not only abstaining from spot bitcoin exchange-traded funds (ETFs) but also removing existing bitcoin futures products from its brokerage offerings.
This move diverges from the trend observed among other financial giants like BlackRock, Invesco, and Fidelity, who recently introduced their own branded Bitcoin ETFs.
Effectively immediately, Vanguard has ceased accepting purchases of cryptocurrency products, including Bitcoin futures ETFs, underscoring its clear stance against delving into the crypto market.
Speaking to Axios, a spokesperson for Vanguard explained that this decision aligns with the company’s strategic focus on providing a core set of products and services, maintaining consistency with its dedication to serving the long-term investment needs of clients.
While some financial institutions embrace the growing interest in cryptocurrency, Vanguard’s decision reinforces its commitment to a more traditional investment approach, steering clear of the evolving landscape of digital assets.
Users Start Backlash on Social Media
Vanguard’s recent move to distance itself from Bitcoin has sparked a social media uproar following complaints from individuals who identified themselves as customers. On Thursday, disgruntled voices surfaced, criticizing the absence of the newly introduced Bitcoin offerings on the Vanguard platform.
The situation ignited discussions on social media platforms as users expressed frustration over the unavailability of these cryptocurrency products on the investment giant’s platform. Also, #BoycottVanguard has started trending on social media platforms like X. Several Bitcoin proponents have also requested their peers to move their 401(k) funds out of Vanguard to other players like Fidelity.
Closing your @Vanguard_Group account is easy.
Take 10 minutes of your life and vote with your money.
We don’t need gatekeepers to tell us how to invest. #BoycottVanguard
— The Wolf Of All Streets (@scottmelker) January 12, 2024
Eric Balchunas, senior ETF strategist at Bloomberg, shared insights into Vanguard’s current anti-bitcoin stance, noting that it aligns with the company’s traditional approach and would likely have pleased its founder, John Bogle.
However, Balchunas anticipates a potential softening of this stance in the upcoming years. He suggests that as Vanguard expands its advisory business, there may be a need for access to alternative investments (alts). Balchunas highlighted Vanguard’s recent foray into private equity as a move in this direction, emphasizing the evolving dynamics in the investment landscape.
Two days since the Bitcoin ETF launch, BTC continues to face strong selling pressure in the market.
The post Vanguard Escalates Fight Against Bitcoin ETFs, Here’s What Happening appeared first on CoinGape.
Filed under: News - @ January 1, 1970 12:00 am