The cryptocurrency market has witnessed a major turning point following the approval of bitcoin Spot Exchange Traded Funds (ETFs) by the United States Securities and Exchange Commission (SEC) on January 11. However, despite its intriguing growth over time, several popular figures in the crypto landscape are still against the exchange products.
Jim Biance defends Vanguard's position towards bitcoin spot ETFs
Bianco Research President and Founder Jim Bianco has adopted the X platform to reveal his thoughts on Vanguard's stance against bitcoin exchange-traded products while also highlighting the company's great success without adopting ETFs.
Bianco has highlighted several important perspectives that the community should consider on the topic. He believes that “Vanguard is the 850-pound gorilla” in the ETF market, while asset management company “BlackRock is the 800-pound gorilla.”
According to Jim, Black RockChina ETF assets were valued at $2.84 trillion as of March 15. Meanwhile, around $18.19 billion was invested across all its ETFs last week, of which $2.6 billion went to IBIT.
Additionally, he made a comparison with Vanguard's assets, which were valued at $2.58 trillion and accumulated an inflow of approximately $29.44 billion across all of its ETFs last week, without any investment in bitcoin ETFs. This data demonstrates Vanguard's strong results in the broader ETF industry, making it one of the best-performing companies in the market over time.
Bianco's ideas emerged in light of criticism from the crypto community after Vanguard Chief Executive Officer (CEO) Tim Buckley revealed the company's decision not to invest in btc ETFs.
In a video posted by Vanguard, Tim Buckley stated that the company “has no plans to offer bitcoin spot ETFs.” This is because it is not considered a “store of value” and does not belong in a “long-term portfolio.”
Although critics From the community, the CEO reiterated the company's point of view, which remained unchanged. He further stated that unless there was a “major change in the bitcoin asset class,” Vanguard would continue to stand by its decision not to provide the products.
A decision of 30 million fund holders
Bianco also noted that the company's decision was a result of 30 million shareholders “not interested in bitcoin,” and Tim Buckley was simply an “effective spokesperson” for these shareholders.
He stated:
Vanguard is not publicly owned. It is mutual, meaning that the fundholders own the company and Buckly is effectively the spokesperson for these 30 million fundholders, who tell you that they are not interested in btc.
These shareholders believe that Vanguard's main goal should be to improve its customer service, not btc because the company has grown so “quickly and so successfully.”
Bianco has so far refuted claims within the crypto community about Buckley's departure from Vanguard, stating that the CEO will be retiring rather than being fired. “He will stay another nine and a half months as he will retire at the end of the year,” he added.
Featured image from iStock, chart from Tradingview.com
