Vanguard Escalates Fight Against Bitcoin ETFs, Here’s What Happening

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

As the Bitcoin price comes under strong selling pressure after the ETF approval earlier this week, Vanguard is doubling down on its fight against the investment product. Earlier this week, Vanguard said that it won’t join other big players like BlackRock in offering Bitcoin ETFs.

Vanguard Doubles Down on No Crypto Stand

Vanguard is reinforcing its commitment to avoid cryptocurrency investments by not only abstaining from spot bitcoin exchange-traded funds (ETFs) but also removing existing bitcoin futures products from its brokerage offerings.

This move diverges from the trend observed among other financial giants like BlackRock, Invesco, and Fidelity, who recently introduced their own branded Bitcoin ETFs.

Effectively immediately, Vanguard has ceased accepting purchases of cryptocurrency products, including Bitcoin futures ETFs, underscoring its clear stance against delving into the crypto market.

Speaking to Axios, a spokesperson for Vanguard explained that this decision aligns with the company’s strategic focus on providing a core set of products and services, maintaining consistency with its dedication to serving the long-term investment needs of clients.

While some financial institutions embrace the growing interest in cryptocurrency, Vanguard’s decision reinforces its commitment to a more traditional investment approach, steering clear of the evolving landscape of digital assets.

Users Start Backlash on Social Media

Vanguard’s recent move to distance itself from Bitcoin has sparked a social media uproar following complaints from individuals who identified themselves as customers. On Thursday, disgruntled voices surfaced, criticizing the absence of the newly introduced Bitcoin offerings on the Vanguard platform.

The situation ignited discussions on social media platforms as users expressed frustration over the unavailability of these cryptocurrency products on the investment giant’s platform. Also, #BoycottVanguard has started trending on social media platforms like X. Several Bitcoin proponents have also requested their peers to move their 401(k) funds out of Vanguard to other players like Fidelity.

Closing your @Vanguard_Group account is easy.

Take 10 minutes of your life and vote with your money.

We don’t need gatekeepers to tell us how to invest. #BoycottVanguard

— The Wolf Of All Streets (@scottmelker) January 12, 2024

Eric Balchunas, senior ETF strategist at Bloomberg, shared insights into Vanguard’s current anti-bitcoin stance, noting that it aligns with the company’s traditional approach and would likely have pleased its founder, John Bogle.

However, Balchunas anticipates a potential softening of this stance in the upcoming years. He suggests that as Vanguard expands its advisory business, there may be a need for access to alternative investments (alts). Balchunas highlighted Vanguard’s recent foray into private equity as a move in this direction, emphasizing the evolving dynamics in the investment landscape.

Two days since the Bitcoin ETF launch, BTC continues to face strong selling pressure in the market.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.