Global asset management giant Vanguard, which has always insisted on not offering cryptocurrency-related products, recently submitted an application to the U.S. Securities and Exchange Commission (SEC) for a new fund. In the application, Vanguard mentioned digital currencies and provided definitions related to digital currencies, which the community believes may be a precursor to a change in its stance on cryptocurrencies.
Summary:
Vanguard’s new CEO pours cold water: will not provide Bitcoin ETF, cryptocurrency trading services
Background:
Vanguard appoints former Bitcoin ETF promoter as new CEO, will its anti-cryptocurrency stance change?
Global asset management giant Vanguard recently submitted an application to the U.S. Securities and Exchange Commission (SEC) for Vanguard Specialized Funds, seeking to track the performance of a benchmark index that measures the return on investment of common stocks in companies with increasing dividends over time.
Vanguard defines digital currencies in its submitted application documents as a type of digital asset that serves only as a store of value, medium of exchange, or unit of account. Digital currencies are further classified as digital assets that are not issued or guaranteed by any jurisdiction, central bank, or public institution.
According to Vanguard’s definition, digital assets rely on algorithm technology to regulate the generation of new units of digital assets, and transactions involving digital assets are recorded on decentralized networks or distributed ledgers.
Vanguard distinguishes “digital currencies” from “digital security tokens,” defining the latter as any digital asset that is neither a digital currency nor a digital utility token. The value of digital security tokens primarily derives from or represents the rights to independent assets or asset pools.
Vanguard also provides a definition for “digital utility tokens,” describing them as digital assets that provide access to specific networks, products, or services.
Vanguard’s new CEO previously stated that the company would not offer a Bitcoin ETF.
Previously, in January of this year, Vanguard faced widespread criticism from the cryptocurrency community for refusing to provide Bitcoin spot ETF trading services to customers and no longer accepting customer purchases of cryptocurrency products, which even led to boycotts and capital withdrawals.
Later, CEO Tim Buckley, who took a strong anti-cryptocurrency stance, announced his retirement at the end of the year. In May, Salim Ramji, a former BlackRock executive who played a significant role in the launch of Bitcoin spot ETFs, was announced as the new CEO of Vanguard and will take office on July 8. The appointment of Salim Ramji, who has experience leading BlackRock’s global iShares business, sparked expectations that Vanguard’s cryptocurrency policy might change.
However, Salim Ramji recently poured cold water on market expectations that Vanguard may offer its own Bitcoin spot ETF, stating that not providing Bitcoin spot ETF services to customers aligns with Vanguard’s investment philosophy and emphasizing that this view is logical and consistent.
Nevertheless, as Vanguard clarifies the definition of digital currencies in its new fund application, the idea that Vanguard may be considering adjusting its cryptocurrency policy becomes stronger. The community still believes that Salim Ramji, who has experience leading BlackRock’s global ETF business in the long run, may change Vanguard’s stance.
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