Why isn’t Vanguard interested in Bitcoin ETFs?


24 January 2024 - 13:00

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Vanguard’s decision to exclude spot Bitcoin ETFs from its platform has prompted some clients to look for alternatives.

Why isn't Vanguard interested in Bitcoin ETFs?

Vanguard, a leading asset management firm, announced that it currently has no plans to introduce spot Bitcoin ETFs on its platforms, despite approval from the Securities and Exchange Commission (SEC).

Vanguard’s decision to exclude these products from its offerings has sparked mixed reactions among investors.
The SEC recently approved ETFs from several companies, including Ark Invest, Bitwise, BlackRock, Fidelity, Grayscale, and others. However, Vanguard has decided to stay out of the spot Bitcoin ETF hype, at least for now.

While we continually evaluate our brokerage offering and review new products in the market, spot bitcoin ETFs will not be available for purchase on the Vanguard platform,” the company said.

Additionally, Vanguard has clarified that it has no plans to offer Bitcoin ETFs or other cryptocurrency-related products. The company’s perspective is that these products do not align with their offering focused on asset classes such as stocks, bonds, and cash, considered as the fundamental elements of a balanced long-term investment portfolio.

Despite the company’s official stance, it is possible to purchase Futures-based Bitcoin ETF. This raised questions about the consistency of Vanguard’s position, as futures-based ETFs track the price of bitcoin anyway.

Vanguard’s decision to exclude spot Bitcoin ETFs from its platform has prompted some clients to look for alternatives. Spot bitcoin ETFs will be available on platforms such as Schwab, Fidelity, SoFi and Wells Fargo.

It is common for new ETFs to only be available on self-managed platforms, such as Fidelity and Schwab, due to fewer restrictions than other asset management platforms.

Other asset management platforms may follow Vanguard’s lead and decide not to offer spot Bitcoin ETFs. The issue of cryptocurrencies continues to raise debates among asset management firms, who must evaluate whether these products are suitable for their clients and whether they pose risks to society.

Original article published on Money.it Italy 2024-01-19 06:55:00. Original title: Perché Vanguard non è interessata agli ETF su Bitcoin?


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