Vanguard, the largest index fund in the United States, has expanded its stance on cryptocurrencies by announcing that it will no longer offer its customers the option to purchase cryptocurrency products, including Bitcoin futures ETF. The company spokesperson stated that in addition to not providing Bitcoin spot ETF trading, they will now also stop accepting purchases of cryptocurrency products. Vanguard’s decision is based on the “highly speculative” and “regulatory uncertainty” nature of cryptocurrencies.
This move by Vanguard has stirred up a wave of resistance within the cryptocurrency community, with several industry leaders and KOLs leading the way in 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 position of distancing itself from cryptocurrencies, stating that in addition to not offering Bitcoin spot ETF trading services, they have no plans to launch their own Bitcoin ETF or any other cryptocurrency-related products. The spokesperson further explained, “Our long-standing view is that the high volatility of cryptocurrencies goes against 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 refuse to offer Bitcoin ETF trading services, Cathie Wood, the CEO of Ark Investment Management, which successfully launched a Bitcoin spot ETF last week, commented in a Yahoo interview on Saturday that Vanguard’s decision is “very unfortunate.”
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