Vanguard avoided internet funds in the late 1990s, and in 2019 decided to eliminate leveraged funds, inverse funds, and ETFs, and will stop offering most over-the-counter traded stocks in 2022. Janel Jackson, Global Head of ETF Capital Markets, pointed out that in hindsight, Vanguard made the right decisions, ultimately benefiting its users.
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Why Vanguard does not have a Bitcoin ETF
Does Vanguard plan to launch a Bitcoin ETF?
Why Vanguard does not offer cryptocurrency-related products?
Cryptocurrencies – Immature, speculative assets with no intrinsic value or cash flow
Vanguard also avoided the internet bubble and inverse ETFs
Vanguard, in response to the controversy surrounding its refusal to introduce a Bitcoin ETF, has provided a comprehensive explanation on its official website titled “Why Vanguard does not have a Bitcoin ETF”.
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The inventor of ETFs withdraws from Bitcoin futures, solidifying its position of “no cryptocurrency” investments
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Does Vanguard plan to launch a Bitcoin ETF?
Janel Jackson, Global Head of ETF Capital Markets, stated:
No, Vanguard considers various factors, including the long-term investment value and meeting customer demands. Although there has been an overall increase in discussions about Bitcoin, we currently believe that it does not have a suitable role in long-term investment portfolios.
He also emphasized that Vanguard is indeed interested in blockchain and actively participates in related technological research, believing that it will make the capital market more efficient.
Why Vanguard does not offer cryptocurrency-related products?
Andrew Kadjeski, Head of Brokerage and Investment Solutions, pointed out that offering cryptocurrency-related products is simple, but Vanguard’s structure is designed specifically to meet the needs of investors, the majority of whom are long-term buy-and-hold investors.
Cryptocurrencies – Immature, speculative assets with no intrinsic value or cash flow
Janel Jackson cited an article from Morningstar and stated that even a 5% allocation of Bitcoin in a traditional balanced investment portfolio could significantly increase risk, mainly due to Bitcoin’s extreme volatility.
He said:
To Vanguard, cryptocurrencies appear more speculative than investment. Although they have been classified as commodities, they are an immature asset class with almost no history, intrinsic economic value, or cash flow, and could severely disrupt investment portfolios.
Vanguard also avoided the internet bubble and inverse ETFs
Janel Jackson and Andrew Kadjeski mentioned that Vanguard also avoided internet funds in the late 1990s and decided to eliminate leveraged funds, inverse funds, and ETFs in 2019, and will stop offering most over-the-counter traded stocks in 2022.
Vanguard could certainly leverage these advantages, but they always ask themselves:
Does this meet the long-term needs of investors? In hindsight, in almost all cases, I believe we made the right decisions, ultimately benefiting our users.
Janel Jackson emphasized that Vanguard’s mission is to provide investors with the best opportunities for investment success. This is not just a slogan, but it is ingrained in their DNA, and not offering a Bitcoin ETF is a testament to their commitment.
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