Vanguard, a major player in the investment management industry with more than $7 trillion in assets, has taken a surprising stance by blocking client access to spot bitcoin exchange-traded funds (ETFs), according to multiple reports. The move marks a notable departure from the growing trend of institutional interest and adoption of bitcoin-related financial products.
Vanguard says it has no plans to offer spot bitcoin ETFs or cryptocurrency-related products.reportedThe block. The company cited that the high-volatility nature of bitcoin runs counter to the company's goal of helping investors earn “real returns” in the long term.
Reports Some clients say that while they cannot buy the newly listed spot ETFs, they can sell shares of GBTC, Grayscale's spot bitcoin ETF. a client reportedly spoke to a company representative, who stated, “We are currently not allowing them to be purchased because it does not fit with Vanguard's investment philosophy.”
Vanguard's decision to restrict client access comes just one day after the SEC first approved bitcoin spot ETFs, which have seenover $2.3 billion in trading volume on launch day. It remains to be seen whether the renowned asset manager will reverse his stance and allow clients to participate in the booming bitcoin market.
