By Source: Vanguard
Asset management giant Vanguard has opted not to allow the purchase of spot Bitcoin exchange-traded funds (ETFs) on its platform, triggering the crypto community.
According to a report from The Wall Street Journal on January 11, Vanguard stated that it will not offer the new spot Bitcoin ETFs on its brokerage platform, citing a misalignment with its traditional offerings.
Customers of other investment firms, including Citi, Merrill Lynch, Edward Jones, and UBS, reported being unable to purchase spot Bitcoin ETFs on their respective platforms, according to The Wall Street Journal.
Vanguard Won’t Allow Bitcoin ETFs
The company explained in a statement to the WSJ, “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.”
Vanguard emphasized its commitment to asset classes like equities, bonds, and cash, which it views as fundamental components of a well-balanced, long-term investment portfolio.
Notably, Vanguard did not apply for a spot Bitcoin ETF among the 14 issuers last year. The decision not to support spot Bitcoin ETFs has led some investors to reconsider their positions, with reports of customers moving their funds to alternative platforms.
I have 8 years worth of 401K savings at @Vanguard_Group from my time as an employee at Google.
I will be rolling over these funds to @Fidelity.
Vanguard’s paternalistic blocking of Bitcoin ETFs does not fit in with my investment philosophy. https://t.co/eKmgo0xK5h
— yuga.eth (@yugacohler) January 11, 2024
Crrypto Community Dissatisfied with Asset Management Giant
Several from the crypto community even called for boycotting the $7.7 trillion asset manager for not allowing spot Bitcoin ETFs.
The asset management giant allegedly only permits investors to sell Grayscale’s flagship Bitcoin product, GBTC, which recently underwent a conversion into a spot ETF.
Several investors, including Coinbase’s senior engineering manager Yuga Cohler, expressed their dissatisfaction with the asset manager’s approach. Cohler stated his intention to transfer Roth 401(k) savings from Vanguard to Fidelity, which is one of the issuers of the 10 spot Bitcoin ETFs launched on January 11. Cohler criticized Vanguard’s “paternalistic blocking” of Bitcoin ETFs, asserting that it doesn’t align with his investment philosophy.
Bitcoin commentator Neil Jacobs also revealed plans to transfer funds out of Vanguard, describing the reported decision as a “terrible business decision.”
The post Crypto Community Calls to Boycott Vanguard as $7.7 Trillion Asset Manager Blocks Spot Bitcoin ETFs appeared first on Cryptonews.
