Bittime - Vanguard CEO Tim Buckley is bucking customer pressure to offer a spot Bitcoin ETF even though some of the company's competitors already do.
In a recent video published by Vanguard, Buckley warned of the dangers of including Bitcoin ETFs in retirement investment plans. The reason is the erratic volatility of these crypto assets.
Buckley said that Vanguard does not believe a Bitcoin ETF is suitable for the long-term portfolio of someone saving for retirement because Bitcoin is a speculative asset.
Bitcoin: A Speculative Asset?
Buckley also questioned Bitcoin as a store of value. He gave the example of Bitcoin's significant decline during the 2022 stock market crash.
When stocks experience a crisis, Bitcoin also falls. So, it's hard to think that Bitcoin fits in a long-term portfolio.
It should be noted, Bitcoin reached an all-time high above $69,000 in 2021. However, 2022 was a dark year for Bitcoin with a sharp decline to below $16,000.
In comparison, the S&P 500 also experienced a 21% decline in the first half of 2022. Many blamed interest rate increases by the US Federal Reserve for the decline.
Responding to a question about when Vanguard would offer a direct Bitcoin ETF, Buckley stated the company would not change its stance, unless the asset class changed.
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Investors Move to Competitors
Vanguard's decision not to offer a spot Bitcoin ETF drew criticism from customers, especially those in the crypto industry.
One who disagrees is Yuga Cohler, Senior Engineering Manager at Coinbase. He plans to move his Roth 401(k) savings at Vanguard to Fidelity, one of the companies that offers spot Bitcoin ETFs.
Cohler said that Vanguard's stance on blocking Bitcoin ETFs is inconsistent with its investment philosophy.
Also Read: Pros and Cons of Investing in Bitcoin ETFs
Vanguard Remains Indirectly Exposure to Bitcoin
Although reluctant to offer crypto products directly, Vanguard still has significant indirect exposure to Bitcoin.
Vanguard is the second-largest institutional holder of MicroStrategy shares, a company known for its large Bitcoin holdings. Based on a Cointelegraph report on January 12, 2024, it was stated that Vanguard holds 8.24% of MicroStrategy shares.
Also Read How to Buy Crypto:
Conclusion
Vanguard's decision to reject spot Bitcoin ETFs goes against a growing trend in the financial industry. Some of their major competitors have launched similar products, attracting investors looking to include Bitcoin in their portfolios.
The pushback raises questions about how long Vanguard can stick with its stance, especially if customers keep up the pressure.
Will Vanguard change its stance in the future? Only time will tell. However, what is certain is that this decision means that investors interested in Bitcoin will have to look elsewhere for alternatives.
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How to Buy Crypto with Bittime
You can buy and sell crypto assets in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
To be able to buy crypto assets on Bittime , make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. Learn Complete Guide How to Buy Crypto on Bittime .
Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also Read:
Bitcoin Spot ETFs Record Record Inflows
Buy Bitcoin vs Spot Bitcoin ETF, Which is More Profitable?
DISCLAIMER : This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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