Vanguard Stays on the Sidelines as U.S. Spot Bitcoin ETFs Debut
Vanguard, a prominent investment management company, refrained from offering access to spot Bitcoin ETFs on the first day of their trading in the United States. This decision left Vanguard users unable to participate in the action surrounding the newly approved 11 spot funds by the Securities and Exchange Commission (SEC).
Key Points:
- Vanguard cites the “highly speculative” and “unregulated” nature of Bitcoin ETFs as reasons for their non-availability.
- A company spokesperson emphasizes a long-standing perspective against crypto-related products, highlighting cryptocurrency’s high volatility.
On Thursday, a Vanguard customer service representative, responding to inquiries, explained that the platform excludes Bitcoin ETFs due to their speculative and unregulated nature.
Read more: Spot Bitcoin ETFs Spark $2.6B Opening Day Trading, Bitcoin Slumps Below $46,000
Bitcoin ETFs don’t align with Vanguard’s stable investing philosophy
The representative emphasized that such investments do not align with Vanguard’s overarching philosophy of long-term, stable investing. This decision is consistent with Vanguard’s policy against other types of investments, such as leveraged ETFs.
A spokesperson from Vanguard officially confirmed the absence of spot Bitcoin funds on their platform, stating, “We also have no plans to offer Vanguard Bitcoin ETFs or other crypto-related products.”
The spokesperson reiterated the company’s commitment to helping investors generate positive real returns over the long term, underscoring the perceived inconsistency of cryptocurrencies with this goal.
Read more: BTC Crashes As SEC Approves All Spot Bitcoin ETFs
Interestingly, clients attempting to buy BlackRock’s IBIT on Vanguard’s platform were met with obstacles. The website displayed a message indicating that the securities might be unavailable for purchase due to various factors, including regulatory restrictions, corporate actions, or trading and settlement limitations.
In contrast, Charles Schwab and Fidelity allowed users to seamlessly participate in the trading of spot bitcoin ETFs. Fidelity, in particular, reminded users of the investment’s inherent risk by requiring them to acknowledge their experience and high tolerance for risk through a “Designated Investments Agreement.”
The varying approaches among brokerages highlight the ongoing debate within the financial industry regarding the acceptance and integration of cryptocurrencies.
