Vanguard CEO Tim Buckley has once again reiterated the investing giant's stance against adopting spot bitcoin ETFs. bitcoin-etfs#modal-transcript” target=”_blank” rel=”noopener nofollow”>In a video statement Also with the company's chief investment officer, Greg Davis, Buckley highlighted the reasons behind Vanguard's decision not to participate in the bubbling bitcoin ETF market.
bitcoin is too volatile, not worthy of long-term investment: Vanguard Boss
According to Buckley, Vanguard has been receiving numerous inquiries about the potential for the company to eventually offer a spot bitcoin ETF. This development is not at all surprising after the company's prominent anti-cryptocurrency stance, which draws a lot of attention due to its status as the world's second-largest asset manager.
Following the historic approval of bitcoin spot ETFs on January 10 by the US Stock Exchange (SEC), Vanguard, along with investment firm Merrill Lynch, were two of the major financial players that They denied access to these innovative investment funds, which generated much criticism from their clients and the industry. figures such as Ark Invest CEO Cathie Wood.
Explaining Vanguard's stance against the bitcoin ETF offering, Buckley stated that the cryptocurrency operated as a speculative asset unsuitable for long-term investment and not in conjunction with the company's investment model. To reinforce this point, the Vanguard boss made reference to bitcoin's decline following a decline in the stock markets.
Buckley said:
Something like bitcoin is too volatile and is not a store of value. It has not been and it is very volatile. When stocks were hit by the recent crisis, bitcoin came with them. And that's why it's speculative. It's really hard to think about how it belongs in a long-term portfolio.
Vanguard's CEO also stated that they preferred to invest in assets with tangible “underlying cash flow” similar to stocks or bonds, a criterion they believe bitcoin does not currently meet. In all, Buckley reaffirmed the investment company's decision to refrain from spot bitcoin ETFs, barring a change in the cryptocurrency's asset class.
bitcoin ETF Demand Increases
Amid Vanguard's conservative stance, some other asset managers have embraced bitcoin spot ETFs, recognizing that they seek to offer diverse investments that meet all of their clients' unique needs. More recently, San Diego-based financial firm Cetera announced the adoption of four btc ETFs as part of investment options.
Additionally, Patient Capital, a $1.8 billion asset manager, has asked the SEC for approval to convert up to 15% of its holdings into bitcoin ETFs. These developments are very interesting for the crypto community as the launch of bitcoin spot ETFs was expected to increase institutional demand for the largest cryptocurrency asset.
So far, bitcoin spot ETFs have performed surprisingly well, earning a Total net flow of $11.95 billion during the last two months of negotiation. Meanwhile, bitcoin is currently trading at $69,260.35 as the crypto market leader attempts a market rally following a price correction over the past two days.
btc trading at $69,185 on the weekly chart| Source: BTCUSDT on Tradingview.com
Featured image from The Economic Times, chart from Tradingview.com
