Vanguard Files Specialized Fund With Special Mention of Digital Currency

Godfrey Benjamin
May 28, 2024
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Highlights

  • Vanguard is launching a new specialized funds products per filings with SEC
  • The firm mentioned several crypto linked terms in the filing
  • Speculation is growing whether it plans to change its anti-Bitcoin stance

A recent event has prompted many to speculate the possibility that investment banking giant Vanguard may be having a rethink on its crypto stance.

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Vanguard Offers Definition of Crypto Terms

As detailed in a recent update, the company has filed for a new “Vanguard Specialized Funds” with the  United States Securities and Exchange Commission (SEC). As revealed, “the Fund seeks to track the performance of a benchmark index that measures the investment return of common stocks of companies that have a record of increasing dividends over time.”

In the lodged filing, there was a mention of Digital Currency alongside some key crypto-linked definitions provided by the investment management firm.

Vanguard described “digital currency” as a digital asset that acts solely as a store of value, a medium of exchange, or a unit of account. It was further categorized as a digital asset that is not issued or guaranteed by any jurisdiction, central bank, or public authority.

According to Vanguard’s filing, digital asset relies on algorithmic techniques to facilitate the regulation of the generation of new units of the digital asset. It equally has transactions that involves the digital asset recorded on a decentralized network or distributed ledge.

Noteworthy, the firm went on to offer a distinction between digital currency and digital security token. This second group encompasses any digital asset that is neither a digital currency nor a digital utility token. As submitted to the SEC, digital security token oftentimes derive its value primarily from, or represent an interest in, a separate asset or pool of assets.

The last group of asset described by Vanguard is the digital utility token. This was described as a digital asset that provides access to a particular network, product, or service amongst others.

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Vanguard Frowned at Spot Bitcoin ETFs 

It is not known for sure what direction Vanguard is trailing with this digital asset “sensitization”, but the company have previously portrayed itself as an antagonist of Bitcoin. While other top investment asset management firms like BlackRock and Fidelity tested the “waters” of spot Bitcoin ETFs in January, Vanguard vehemently clarified its lack of interest in the offering.

Vanguard hinged its decision on the highly speculative and unregulated nature of the broader crypto market, adding that the company’s have a conflict with its long-term investing philosophy.

Meanwhile, Tim Buckley , the current Chairperson and CEO who has been in the position for over three decades, is set to retire by the end of 2024. In preparation for his exit later this year, the company has appointed a new CEO Salim Ramji, a former executive at BlackRock.

Considering his years of experience leading BlackRock’s global ETF business, Ramji’s appointment is fueling the speculation of a possible change in stance in the long run.

Read More: Sei Launches First Parallelized EVM Blockchain

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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.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…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.

About Author
About Author
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on X, Linkedin
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.