Vanguard is under fire for not permitting the trading of Spot Ethereum ETFs on its platform, despite increased interest.
Vanguard Group, a prominent financial advisor in the United States is facing significant criticism due to its refusal to allow the trading of Spot Ethereum ETFs on its platform. Vanguard Group made this decision despite growing interest in digital assets and recent regulatory policy advancements.
Vanguard Attracts Criticism For Not Offering Spot Ethereum ETFs
In a previous statement, the company expressed a similar stance regarding spot Bitcoin ETFs. Eric Balchunas, who is the senior ETF analyst at Bloomberg aired his dissatisfaction on several social media platforms. In a post on X, he expressed his strong disagreement with Vanguard’s position on spot Ethereum ETFs.
In addition, he referred to the action as “silly” and gave the impression that the company is acting in a “nanny role.”In a mocking manner, Balchunas asserted that the investors in Vanguard are “the smartest money on the planet” and are able to make well-informed decisions regarding their investments.
Crypto was able to shift the stance of some in the highest rungs of government,” Balchunas said on X. “Crypto was able to shift the stance of some in the highest rungs of government.
“Balchunas appeared to comprehend Vanguard’s cautious approach to Ethereum and Bitcoin exchange-traded funds (ETFs), despite the fact that he provided criticism, but he still deemed it excessive.
Additionally, the analyst stated that Vanguard operates in a manner that is distinct from that of other asset managers. He made the observation that the organization operates more like a cooperative and places less emphasis on the pursuit of income.
He also stated that they are not jealous of other people’s successful ETFs, as they have consistently generated nearly a billion dollars daily for more than a decade.
Shortly after the United States Securities and Exchange Commission (SEC) approved the 19b-4 filings on behalf of multiple issuers of Spot Ethereum exchange-traded funds, the investment advisor made his decision.
However, trading in these exchange-traded funds (ETFs) is not yet possible. Despite this, the SEC has not yet cleared the S-1 registration statements that fund issuers have submitted.
The Bloomberg analyst’s earlier prediction indicates that most people expect these products to launch by July 4, 2024. Blockworks received a statement from a spokeswoman for Vanguard that provided clarification regarding the company’s position.
Spot Ether ETFs will not be available for purchase on the Vanguard platform while we are regularly evaluating our brokerage offering and new product introductions to the market, according to the company’s spokesperson.
The company has continually distanced itself from the cryptocurrency sector, referring to it as an asset class that is still in its infancy.
Bloomberg Analyst Hints At A Ray Of Hope
In a statement that was repeated, the spokesman stated, “We believe that cryptocurrency products are not aligned with our [offerings] focused on asset classes such as equities, bonds, and cash, which Vanguard views as the building blocks of a well-balanced, long-term investment portfolio.
Balchunas brought attention to a potential bright spot in the form of Salim Ramji, who has recently taken over as CEO of Vanguard. Ramji, a former BlackRock executive, played a crucial role in initiating BlackRock’s Bitcoin exchange-traded fund (IBIT).
Furthermore, it is believed that he has also made contributions to BlackRock’s ETHA Ethereum ETF. Therefore, Balchunas hypothesized that Ramji’s background, which is favorable toward cryptocurrencies, would have an impact on Vanguard’s future attitude toward bitcoin products.
One glimmer of hope is that their new CEO is obviously interested in cryptocurrency.” Will he have the ability to influence this issue internally, or will he even make an effort to do so? Or will he simply choose to bury that aspect of himself? Balchunas was puzzled over the answer.