Jim Bianco Offers Insights on Vanguard’s Stance on Bitcoin Spot ETFs
Jim Bianco, the President and founder of Bianco Research, has shared his thoughts on Vanguard’s position regarding Bitcoin exchange-traded products. In a post on the X platform, he highlighted the success of Vanguard without adopting ETFs and provided some perspectives to consider.
Vanguard and BlackRock in the ETF Market
Bianco emphasized that Vanguard is a major player in the ETF market, often referred to as the “850-pound gorilla.” He compared Vanguard to BlackRock, which is considered the “800-pound gorilla.” According to him:
- BlackRock’s ETF assets were valued at $2.84 trillion as of March 15.
- About $18.19 billion was invested in all of BlackRock’s ETFs in the past week.
- $2.6 billion went into IBIT, one of BlackRock’s ETFs.
- Vanguard’s assets were valued at $2.58 trillion.
- Vanguard had approximately $29.44 billion inflow into all their ETFs last week.
- Vanguard did not invest in Bitcoin ETFs.
Bianco pointed out that despite not offering Bitcoin ETFs, Vanguard has been successful in the larger ETF industry and has consistently performed well over time.
Tim Buckley’s Decision and Vanguard Fundholders
The criticism from the crypto community arose after Tim Buckley, Vanguard’s CEO, announced that the company would not invest in Bitcoin spot ETFs. In a video released by Vanguard, Buckley stated that Bitcoin is not considered a store of value and does not belong in a long-term portfolio.
Jim Bianco explained that Vanguard is not publicly owned but rather mutual, meaning the fundholders own the company. He mentioned that Buckley is an effective spokesman for these 30 million fundholders who are not interested in Bitcoin. According to Bianco, these fundholders believe that Vanguard should focus on improving customer service rather than investing in Bitcoin because the firm has already achieved rapid and substantial success.
Bianco also clarified that Tim Buckley is retiring at the end of the year and is not being let go by Vanguard, contrary to some claims within the crypto community.
Hot Take: Vanguard Stands Firm on Bitcoin Spot ETFs
Vanguard’s decision to not invest in Bitcoin spot ETFs has sparked debate within the crypto community. While some argue that it is a missed opportunity, others support Vanguard’s focus on its core business and catering to the preferences of its fundholders. Here are some key takeaways:
Success Without Bitcoin ETFs
- Vanguard, a major player in the ETF market, has achieved significant success without offering Bitcoin ETFs.
- The company’s assets are valued at $2.58 trillion, and it had substantial inflow into its ETFs last week.
- Despite not investing in Bitcoin, Vanguard remains one of the best-performing firms in the market.
Fundholder Preferences
- Vanguard’s decision aligns with the preferences of its 30 million fundholders, who are not interested in Bitcoin.
- The focus on improving customer service reflects the priorities of these fundholders.
Tim Buckley’s Retirement
- Tim Buckley, Vanguard’s CEO, is retiring at the end of the year and is not being forced out by the company.
- He serves as a spokesman for Vanguard’s fundholders, who have expressed their disinterest in Bitcoin.
While the approval of Bitcoin Spot ETFs by the SEC marks a significant milestone for the cryptocurrency market, it is important to recognize that not all major players in the industry are embracing these products. Vanguard’s stance on Bitcoin spot ETFs highlights the diverse perspectives within the crypto landscape and underscores the need for further discussions and debates.
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