Vanguard, the largest index fund in the United States, has expanded its stance on cryptocurrencies by stating that it will no longer offer Bitcoin spot ETF trading and will also cease accepting client purchases of cryptocurrency products, including Bitcoin futures ETFs. The company spokesperson mentioned that this decision is due to the “highly speculative” nature and “regulatory uncertainty” surrounding cryptocurrencies.
This move by Vanguard has caused a significant uproar within the cryptocurrency community, with some industry leaders and key opinion leaders (KOLs) withdrawing their investments from Vanguard and turning to other competitors that offer spot ETF trading.
According to reports from Axios and The Block, Vanguard has strengthened its stance on distancing itself from cryptocurrencies. The company spokesperson stated on the 13th that in addition to not offering Bitcoin spot ETF trading services, Vanguard has no plans to launch its own Bitcoin ETF or any other cryptocurrency-related products. The spokesperson added, “Our long-standing view has been that the high volatility of cryptocurrencies is at odds with our goal of helping investors generate positive long-term returns. This change allows us to focus on providing a range of core products and services that align with our commitment to meeting the long-term needs of investors.”
Regarding Vanguard’s decision to not provide Bitcoin ETF trading services, Cathie Wood, CEO of Ark Investment Management, which successfully launched a Bitcoin spot ETF last week, criticized Vanguard’s choice as “very bad” in an interview with Yahoo.