- Vanguard brought in a new CEO, Salim Ramji, who has a background in heading BlackRock’s global ETF business.
- On January 24, Vanguard indicated that it did not have plans to create a BTC ETF or other crypto-related products or feature other issuers.
- Ramji will not assume the position until July but commits not to reverse Vanguard’s decision not to launch a Bitcoin ETF.
- Firms with over $100 million in assets continue to disclose BTC ETF shares.
Spot Bitcoin exchange-traded funds (ETFs) remain an abounding fundamental in the cryptocurrency market since the landmark approval on January 10 and subsequent launch the next day. As the investment product, which allows investors exposure to BTC continues trading, an increasing number of deep pockets continue to disclose ownership.
Also Read: Bitcoin price reclaims territory above $64K after April CPI release
Vanguard CEO Incumbent’s sentiments about spot BTC ETF don’t look positive
Firms and institutions have progressively disclosed ownership of BTC ETF. Ordinarily, the fact that high-networth institutions want in on the action would be reason enough for investment bigwigs to venture into the business, but The Vanguard Group will not budge.
In a recent appearance, the new CEO of Vanguard, Salim Ramji, has shot down the possibility of launching spot BTC ETFs, saying he will not reverse the firm’s decision not to launch a Bitcoin ETF.
Incoming Vanguard CEO Salim Ramji already shooting down any possibility of firm launching spot bitcoin ETF…
He didn’t specifically comment on whether Vanguard would allow spot bitcoin ETFs on its brokerage platform, but this doesn’t look positive.
via @AndrewWelsch pic.twitter.com/ILn4nvVwNN
— Nate Geraci (@NateGeraci) May 15, 2024
Ramji’s statement is a direct extract from an excerpt from the January 24 blog on Vanguard’s website, which reads, “Vanguard does not have plans to create a Vanguard bitcoin ETF or other crypto-related products. Additionally, such products from other issuers will not be offered on our brokerage platform.”
Ramji is set to take office in July and commits to abiding by the firm’s stance. His ascension would mark a paradigm shift, given his history heading BlackRock’s global ETF business. In fact, he spearheaded BlackRock’s IBIT filing and logistics. His interest in digital assets is also not a secret.
Vanguard’s reasons for not offering crypto-related products
As a firm and a brokerage platform, Vanguard is purposely structured to meet the needs of its investor owners, most of whom are long-term, buy-and-hold investors.
Vanguard sees crypto as more of a speculation than an investment, saying, “It’s an immature asset class that has little history, no inherent economic value, no cash flow, and can create havoc within a portfolio.”
Vanguard’s products and services are designed with the goal to help investors save more, trade less, and take a long-term approach—not chase trends and churn their portfolios. Crypto is highly volatile, making it more tempting to trade.
However, Bloomberg Intelligence ETF analyst Eric Balchunas says that with Ramji’s entry as CEO, “[The] door [is] much more open now.”
It becomes even more enticing considering the stream of institutions that continue to disclose ownership. Among them:
- Wells Fargo now holds Grayscale’s spot Bitcoin ETF, joining the trend of institutional adoption.
- Susquehanna International Group holds $1.8 billion in Bitcoin ETFs
- State of Wisconsin Investment Board (SWIB) invested $162 million in Bitcoin ETFs, making it the first state institution to go public with spot BTC ETF holdings.
- JPMorgan, the largest bank in the US, has disclosed holdings in spot Bitcoin ETFs, per SEC filing.
- Millennium Management discloses $2 billion spot Bitcoin ETF portfolio.
By venturing into this space or allowing other crypto-related products, Vanguard would embrace Bitcoin ETFs while allowing investment managers to tap into the growing cryptocurrency market without directly holding cryptocurrencies, which can be complex and risky.
