Vanguard’s Outgoing CEO Maintains Anti-Bitcoin ETF Stance

Vanguard’s CEO remains opposed to offering Bitcoin ETFs due to concerns over volatility and uncertainty about its role as a store of value.

Despite consumer criticism and frequent inquiries about the company’s intentions to offer such funds, Tim Buckley, the Chief Executive Officer of Vanguard Group, remains unwavering in his opposition to exchange-traded funds (ETF) based on Bitcoin.

Vanguard’s CEO Kicks Against Bitcoin ETFs

In a recent Vanguard video, Buckley cautioned against including Bitcoin exchange-traded funds (ETFs) in retirement investing plans because of the asset’s volatility.

“We don’t believe it belongs, like a bitcoin ETF belongs in a long-term portfolio of someone saving for their retirement. It’s a speculative asset.”

Buckley also argued that Bitcoin’s role as a store of value is uncertain. He made this case by pointing out that Bitcoin had a significant decline alongside the stock market catastrophe that occurred in 2022.

During the most recent financial crisis, when stocks were plummeting, Bitcoin plummeted along with them. As a result, it is pure speculation. It’s challenging to consider how it would fit into a portfolio with a long-term investment horizon,” he said.

In 2021, Bitcoin achieved an all-time high of $69,000, and it has only recently eclipsed that record, reaching $73,835, which occurred this week. However, the item’s value dropped to $16,000 in 2022.

Buckley remarked that the investment firm is determined not to change its attitude “unless the asset class changes.” This was in response to concerns about when the company might offer it to its consumers.

Vanguard quickly announced its decision not to provide the product to its consumers after the United States Securities and Exchange Commission (SEC) approved eleven spot Bitcoin exchange-traded funds (ETFs) on January 11.

On January 12, Vanguard has declared that it does not intend to sell any cryptocurrency-related products or exchange-traded funds (ETFs) tied to Bitcoin.

Customers already in the market, notably those working in the cryptocurrency field, voiced their opposition to the decision. Yuga Cohler, senior engineering manager at Coinbase, was one of the individuals who stated that he would be transferring his Roth 401(k) money from Vanguard to Fidelity, which is one of the accepted spot Bitcoin ETF candidates.

Vanguard’s paternalistic restriction on Bitcoin ETFs does not align with the financial philosophy I adhere to, as articulated by Cohler on X.

Although the company has no plans to sell any cryptocurrency products, it still has considerable exposure to Bitcoin in a roundabout way.

This is because it is MicroStrategy’s second-largest institutional holder. According to a report published on January 12, Vanguard maintained an 8.24% investment in the company.”