Vanguard Blocks Client Access to Bitcoin ETFs
Vanguard Group, the second-largest asset manager globally, has restricted client access to newly listed Bitcoin spot ETFs. The firm has also stated that it will not launch its own Bitcoin ETF product as it does not align with the company’s investment philosophy.
Banks Preventing Bitcoin Purchases
Several Twitter and Reddit users have confirmed that they are unable to purchase Bitcoin-backed funds through their Vanguard client accounts. One user reported calling the firm about their inability to buy into the Grayscale Bitcoin Trust (GBTC), and was informed that Vanguard does not allow such purchases as it doesn’t fit with their investment philosophy. Vanguard now only allows investors to sell their current holdings of GBTC.
Vanguard’s Aversion to Commodities
A spokesperson for Vanguard stated that the firm has no plans to enable the purchase of Bitcoin ETFs on its platform due to their high volatility. This rejection of Bitcoin by Vanguard is in line with the views expressed by its founder, John Bogle, who warned investors to avoid Bitcoin in 2017. Bloomberg ETF analyst Eric Balchunas explained that Bogle generally disliked commodities, emphasizing that Bitcoin lacks cash flows or a coupon attached.
Hot Take: Wealth Managers Denying Access to Bitcoin ETFs
Vanguard’s decision to block client access to Bitcoin spot ETFs is not unique, as other wealth managers like Merrill Lynch have also denied customers access to such products. This reluctance from traditional financial institutions highlights the ongoing skepticism and caution surrounding cryptocurrencies in mainstream finance.
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