Vanguard Faces Backlash Over Blocking Bitcoin ETFs
Vanguard, one of the world’s largest investment companies, is facing criticism for blocking customer access to publicly listed Bitcoin ETFs approved by the SEC. This decision has led to a wave of backlash and revelations about the company’s operations.
Vanguard Exodus Continues
Customers are already leaving Vanguard due to its refusal to offer recently approved spot Bitcoin ETPs. Co-founder Neil Jacobs and market analyst Sam Callahan have advised their followers on how to transfer their accounts out of Vanguard. NFT collector ‘yugacohler’ has also announced plans to move their funds to Fidelity. Meanwhile, ‘DCinvestor’ has encouraged his followers to use the hashtag #LeaveVanguard.
Manipulation Allegations
Former Vanguard client Vanessa Harris claims that the company is manipulating the price of Bitcoin by only allowing the sale of GBTC but not allowing purchases. Analyst Scott Melker has also raised suspicions about Vanguard’s actions. Capriole Fund founder Charles Edwards reveals that other firms like Morgan Stanley and UBS are also not allowing customers to buy Bitcoin ETFs.
Shady Offerings?
Adam Cochran, a partner at Cinneamhain Ventures, alleges further questionable dealings at Vanguard. He questions why the company refuses to include Bitcoin in its investment policy but offers bonds from countries with human rights violations and terrorist financing. Cochran criticizes Vanguard for taking a “weird moral high ground” and overriding user sovereignty.
Will Vanguard Rethink Its Policies?
It remains to be seen if Vanguard will lose enough business due to its policies to prompt a reconsideration. The company claims to have over 50 million investors as of December 2022.
Hot Take: Vanguard Faces Backlash for Blocking Bitcoin ETFs
Vanguard’s decision to block customer access to Bitcoin ETFs has sparked outrage and led to customers leaving the company. Allegations of manipulation and questionable offerings have further tarnished Vanguard’s reputation. The firm’s refusal to include Bitcoin in its investment policy while offering bonds from countries with human rights violations has drawn criticism. It remains uncertain whether Vanguard will revise its policies in response to the backlash it is facing.
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