The Vanguard Group, a major asset management giant in the United States, has recently confirmed its strengthened investment policy in “non-cryptocurrency” assets, including the withdrawal of Bitcoin futures from its platform. This position contradicts the recent trend among financial institutions, such as BlackRock, in embracing cryptocurrency-related products.
Vanguard’s decision to withdraw from Bitcoin futures within its brokerage services goes against the current Wall Street trend and not only strengthens its opposition to Bitcoin spot ETFs but also represents its unwillingness to participate in any form of cryptocurrency investment.
While other financial giants, such as BlackRock, Invesco, and Fidelity, embrace cryptocurrencies and launch their own Bitcoin ETFs, Vanguard has decided to stand firm, highlighting its stance on traditional investment values and its decision to abandon the emerging digital currency market.
A spokesperson for Vanguard expressed the company’s commitment to prioritizing long-term investment strategies, stating, “This change enables us to focus on providing a core set of products and services consistent with our long-standing practice of serving long-term investors.”
Vanguard’s decision aligns with its long-term investment philosophy and reflects the beliefs of its late founder, John Bogle. In fact, Vanguard was the world’s first ETF creator, with its founder, Jack Bogle, launching the first index fund, the Vanguard 500 Index Fund, in 1976. The development of ETFs has expanded from stocks to bonds and then to commodities.
John Bogle was renowned for advocating simple, low-cost investments rather than speculative ventures, shaping the company’s cautious attitude towards trends and high-risk investments like cryptocurrencies.
This decision has sparked social media buzz, with some individuals claiming to be Vanguard customers expressing dissatisfaction with the inability to adopt cryptocurrency products.
Bloomberg analyst Eric Balchunas commented that Vanguard’s opposition to Bitcoin ETFs is solely to maintain the investment style of its founder. However, such a stance may change in a few years as they have built their own advisory business and need alternative benchmarks.
Not only Vanguard, but Merrill Lynch is also taking a cautious stance on Bitcoin ETFs and will decide whether to change its internal policy of consistently rejecting such products after evaluating trading conditions.
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Further reading:
Bitcoin Spot ETF Launches, BTC Plummets, ETH Takes Over
SEC Chairman Comments on Bitcoin ETF: Centralized ETFs Irony Satoshi Nakamoto’s Decentralized Vision