Vanguard, one of the world’s largest ETF issuers and the founder of index funds, recently announced on its official website a conversation between current CEO Tim Buckley and investor Greg Davis. Tim Buckley emphasized that Bitcoin is not a store of value. In the past, it has not been, and even now, Bitcoin still exhibits volatile trends.
Vanguard, founded by John Bogle in 1975, is a strong advocate of index investing and believes that index funds are the best way for ordinary investors to achieve market average returns. The first fund launched by Vanguard in 1976, the Vanguard 500 Index Fund, was the precursor to ETFs and contributed to the popularity of ETFs.
Tim Buckley mentioned that Vanguard currently has no plans to offer Bitcoin-related ETFs unless there are significant changes in the asset class of Bitcoin. He believes that Bitcoin is a speculative asset, and Greg Davis agrees, saying “absolutely correct.”
Tim Buckley explained that the asset classes offered by Vanguard actually have potential cash flows, such as stocks, where investors hold future earnings of a company, and bonds, which include interest and principal. Therefore, these two assets can be valued, but he does not understand why Bitcoin should be included in investment portfolios or how to evaluate its role in a portfolio.
In summary, the volatility of Bitcoin is too high. It has not been a store of value in the past, and its volatility remains intense. When the stock market recently plummeted, Bitcoin also followed suit. Therefore, it is a speculative asset. It is really difficult to imagine why Bitcoin should be included in long-term investment portfolios.
The good news is that Tim Buckley will retire at the end of the year, and cryptocurrency enthusiasts speculate that Vanguard may undergo a transformation.
ETF
Vanguard
Bitcoin