Lack of Spot Bitcoin ETF Options
On Thursday, spot bitcoin exchange-traded funds (ETFs) finally began trading in the US after the Securities and Exchange Commission (SEC) approved 11 of them. However, some customers were disappointed to find that their financial institutions, including Vanguard, were not offering these spot bitcoin ETFs. Vanguard confirmed that they have no plans to launch their own bitcoin ETF or list funds from other issuers. The company stated that spot bitcoin ETFs do not align with their offer focused on equities, bonds, and cash. As a result, frustrated customers closed their accounts and moved their funds to other platforms that offer spot bitcoin ETFs.
Moving Funds to Other Platforms
Bitcoin enthusiasts who were dissatisfied with Vanguard’s stance on spot bitcoin ETFs decided to transfer their funds to platforms like Fidelity for access to these newly approved products. Some users also reported that Vanguard now only allows them to sell their Grayscale Bitcoin Trust (GBTC) holdings, despite being able to buy them previously. The frustration with Vanguard’s limitations caused individuals to make the switch to other investment platforms that provide spot bitcoin ETF options.
Other Banks Holding Off on Spot Bitcoin ETFs
In addition to Vanguard, several other investment banks, including UBS, Morgan Stanley, Bank of America’s Merrill Lynch, Citi, and Edward Jones, reportedly decided not to offer spot bitcoin ETFs to their customers on the first day. While some banks plan to offer access to these ETFs in the future, others have not disclosed their stance yet.
Hot Take: Limitations on Spot Bitcoin ETFs Lead to Account Closures
The lack of spot bitcoin ETF options offered by Vanguard and other investment firms has fueled frustration among cryptocurrency investors. The decision to block customers from trading these ETFs has resulted in account closures and fund transfers to alternative platforms that provide access to the newly approved products. Vanguard’s focus on traditional asset classes, such as equities, bonds, and cash, has left many crypto enthusiasts seeking more crypto-focused investment opportunities elsewhere.
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