Vanguard CEO Stands Firm Against Bitcoin ETFs Amid Customer Backlash
Summary:
Vanguard Group's CEO, Tim Buckley, remains firmly against Bitcoin exchange-traded funds (ETFs) despite pressure from customers and ongoing questions about its potential inclusion in the firm's offerings. Buckley cautioned against adding Bitcoin ETFs to retirement portfolios due to the asset's volatile nature and expressed doubts about Bitcoin's functionality as a store of value. Despite Bitcoin's value changes, descending as low as $16,000 in 2022 after reaching an all-time high of $73,835, Vanguard maintains its stand of not offering the asset unless the classification changes. The firm's decision led to customer backlash, with some planning to transfer their savings to firms that accept Bitcoin ETFs.
Despite mounting pressure from customers and continued queries about potential offerings, Vanguard Group's Chief Executive, Tim Buckley, remains firmly against Bitcoin exchange-traded funds (ETFs). He recently expressed his views in a Vanguard video, warning against introducing Bitcoin (BTC) ETFs into retirement portfolios owing to the asset's fluctuating value. Buckley stated that, in his view, Bitcoin ETFs are inappropriate for individuals saving for retirement since they are speculative in nature.
Moreover, Buckley expressed doubt about Bitcoin's role as a store of value, highlighting its significant drop during the stock market crash of 2022. He noted that Bitcoin’s trend mirrored that of the dropping stocks, a characteristic not expected of a solid store of value.
In 2021, the value of Bitcoin skyrocketed to an all-time high of $69,000, only surpassed this week when it peaked at $73,835. However, it then experienced a dramatic fall to $16,000 in 2022. Buckley reiterated that Vanguard would not adjust its position on the matter "unless the asset class changes" despite repeated questions about possible Bitcoin offerings.
In January, following the approval of 11 spot Bitcoin ETFs by the United States Securities and Exchange Commission, Vanguard quickly confirmed that it would not add such a product to its offerings. The firm clearly stated on Jan. 12 that it had "no plans to offer Vanguard bitcoin ETFs or other crypto-related products.”
This decision was met with backlash from existing customers, particularly those involved in the cryptocurrency sector. Yuga Cohler, senior engineering manager at Coinbase, voiced his intention to transfer his Roth 401(k) savings at Vanguard to Fidelity, one of the approved Bitcoin ETF candidates. He criticized Vanguard's decision, remarking that the firm's insistence on blocking Bitcoin ETFs was at odds with his financial beliefs.
Published At
3/16/2024 9:07:28 AM
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