Vanguard Blocks Customers from Buying Spot Bitcoin ETFs
Vanguard, the $7.2 trillion asset manager, has blocked customers from buying spot Bitcoin exchange-traded funds (ETFs) on its platform due to its lack of alignment with the company’s investment strategy. This decision has drawn criticism from some customers who are now threatening to move their funds to competitors.
Criticism of Vanguard’s Decision
Customers expressed anger at Vanguard’s decision, with some planning to move their long-term savings and investments to other companies, such as Fidelity. Tony Spencer shared his conversation with a Vanguard representative, revealing the company’s refusal to allow him to purchase Bitcoin ETFs due to a misalignment with Vanguard’s investment philosophy.
Crypto Skepticism On Wall Street
Vanguard’s move reflects ongoing crypto skepticism on Wall Street. This skepticism is evident in the reluctance of traditional asset managers to endorse or offer Bitcoin and other cryptocurrency investment products to their customers.
Disclaimers and Warnings from Competitors
Despite Fidelity and BlackRock’s involvement in the booming Bitcoin ETF market, they continue to warn investors about the high risks associated with purchasing Bitcoin ETFs. Both companies have issued disclaimers and warnings to potential cryptocurrency investors.
Bitcoin ETF Trading on Jan. 11
Despite Vanguard’s decision not to offer spot Bitcoin ETFs, trading in these assets took off to a booming start on Jan. 11, with significant trading volumes. BlackRock was a leading beneficiary, raking in over $1 billion in trading volume.
Hot Take
Vanguard’s block on the purchase of spot Bitcoin ETFs reflects skepticism about cryptocurrencies in traditional financial institutions. This move may push customers to explore alternative investment platforms that are more open to cryptocurrency investments.
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