Bitcoin and Ethereum ETFs still off the table for Vanguard

Bitcoin and Ethereum ETFs still off the table for Vanguard

Share this article

For Vanguard, crypto assets like Bitcoin and Ethereum are “more of a speculation than an investment,” and chasing speculative assets will never be the fund’s investment philosophy. No doubt Vanguard constantly says no to Bitcoin exchange-traded funds (ETFs). There is no exception for Ethereum ETFs.

Earlier this month, Vanguard reportedly appointed ex-BlackRock ETF head Salim Ramji as its next CEO. The transition, slated for July, sparked speculation that the fund might be close to revising its stance on crypto-related investment products.


However, Ramji made it clear that the fund would not file for a Bitcoin ETF and refused to offer any Bitcoin ETF on its brokerage platform.

The firm’s view was reiterated after the SEC’s approval of spot Ethereum ETFs in the US. On Wednesday, Vanguard confirmed to the public that no spot Ethereum fund would be available for purchase.

Commenting on Vanguard’s recent statement, Bloomberg ETF analyst Eric Balchunas said Vanguard’s stance could be frustrating, but it would be better to accept it and “move on” because it is not a typical asset manager who seeks to maximize revenue.

“They [are] more like a co-op, and they’ve taken in nearly billion a day for over a decade, and so they [are not] envious of other people’s hit ETFs,” Balchunas stated.

The expert added that Vanguard could be overprotective when it comes to restricting investors from buying crypto ETFs.

“It seems like they [are] playing Nanny role. Their investors are the smartest money on the planet IMO, they are not easily misled children, they can handle having choices,” Balchunas wrote.

Will history be on Vanguard’s side?

Organizations each have their own implicit and explicit values and norms. For Vanguard, its products need to meet investors’ long-term needs. The fund prioritizes investor protection even if it means sacrificing short-term gains.

Looking back, avoiding trendy investments was Vanguard’s right decision. In the past, the fund refused to chase “hot” options like government-plus funds, tactical-allocation funds, or internet funds, which all crashed and burned.

Its commitment to a sound investment philosophy pays off in nearly all cases. If it still contributes to the firm’s success, an abrupt shift may not be necessary.

It remains unknown if Vanguard will change its judgment on Bitcoin in the future. Bitcoin may need to prove itself as a true store of value, like gold, to get a place in the fund’s portfolio.

Perhaps there’s a glimmer of hope there.

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

Crypto Briefing may augment articles with AI-generated content created by Crypto Briefing’s own proprietary AI platform. We use AI as a tool to deliver fast, valuable and actionable information without losing the insight – and oversight – of experienced crypto natives. All AI augmented content is carefully reviewed, including for factural accuracy, by our editors and writers, and always draws from multiple primary and secondary sources when available to create our stories and articles.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Source link


Be the first to comment

Leave a Reply

Your email address will not be published.