Vanguard CEO Holds Firm On Anti-Bitcoin ETF Position

Despite facing criticism from customers and ongoing inquiries about the firm’s plans to offer them, Tim Buckley, CEO of Vanguard Group, remains steadfast in his strong opposition to Bitcoin exchange-traded funds (ETFs).

In a recent Vanguard video release, Buckley advised against incorporating Bitcoin ETFs into retirement investment portfolios, citing the cryptocurrency’s inherent volatility.

However, Buckley also argued against Bitcoin’s viability as a store of value, highlighting that during the 2022 stock market crash, Bitcoin saw a notable decrease in value, casting doubt on its reliability in such circumstances.

When the recent crisis caused stocks to plummet, Bitcoin’s followed suit. This makes it speculative. It’s challenging to see how it fits into a long-term portfolio,” he remarked. But Bitcoin saw a severe downturn in 2022, falling as low as $16,000.

The S&P 500 experienced a 21% decline in the initial half of 2022, with a significant portion of the responsibility attributed to the Federal Reserve’s elevation of interest rates.

Vanguard’s Bitcoin ETF Stand: No Shift Expected

In response to questions about when the investing firm may start selling spot Bitcoin’s ETF to its clients, Buckley insisted that the company will not be shifting its position “unless the asset class changes.

After the United States Securities and Exchange Commission approved 11 spot Bitcoin ETFs on Jan 10, Vanguard promptly declared its choice to abstain from offering the product to its clientele. On Jan 12, Cointelegraph conveyed that Vanguard has stated it currently has no intentions to introduce Vanguard Bitcoin ETFs or any other cryptocurrency-related products.

Current clientele, especially those within the cryptocurrency sector, expressed resistance to the ruling. Yuga Cohler, a senior engineering manager at Coinbase, announced his intention to transfer his Roth 401(k) funds from Vanguard to Fidelity, one of the endorsed applicants for Bitcoin ETFs.

Despite the company’s lack of plans to introduce a cryptocurrency product, it remains significantly exposed to Bitcoin indirectly, given its status as the second-largest institutional holder of MicroStrategy.

Related Reading | Wealth manager Cetera adds spot BTC ETFs to it platform, with training

The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.

Comments (No)

Leave a Reply