Join Our Telegram channel to stay up to date on breaking news coverage
Vanguard blocked customers from buying spot Bitcoin exchange-traded funds (ETFs) on its platform and now some are threatening to move their funds to competitors.
The $7.2 trillion asset manager, the world’s second-largest after BlackRock, said it has no plans to offer BTC ETFs or allow customers to purchase the product on its platform.
The investment product does not align with the company’s focus on ”asset classes such as equities, bonds, and cash, which Vanguard views as the building blocks of a well-balanced long-term investment portfolio,” it told the Wall Street Journal.
The move provoked criticism from customers. Tony Spencer said on X that a spokesperson from the company told him he could not buy the product as it did not align with its investment philosophy.
Wow. It is worse than I thought. I called and the answer I received was "Currently we aren't allowing those to be purchased as it doesn't fit with Vanguard's investment philosophy."
Me: "Ok but you let me buy GBTC in the past."
Him: "Yes I believe you can only sell that now."
— Tony Spencer (@notsleepy) January 11, 2024
Coinbase engineer Yuga Cohler said he will move his eight years’ worth of 401K savings from Vanguard to Fidelity. Cohler slammed Vanguard’s decision to block BTC ETFs, calling it “paternalistic.”
Blocking Bitcoin ETFs Shows Crypto Skepticism On Wall Street
“Crypto skepticism is still alive and well on Wall Street,” Fox Business reporter Eleanor Terett said in response to Vanguard’s move to block Bitcoin ETFs.
🚨NEW: @Vanguard_Group, the world’s second largest asset manager behind @BlackRock, is reportedly blocking its customers from buying into the new $BTC Spot ETFs, saying the products “don’t fit with Vanguard’s investment philosophy.”
Now we’ll start to see how institutional… https://t.co/LmZodeYyad
— Eleanor Terrett (@EleanorTerrett) January 11, 2024
Despite launching it own BTC ETF, Fidelity issued a disclaimer to users attempting to purchase the shares, reminding them that the ETF is subject to a “Designated Investments Agreement.” Users have to acknowledge they are experienced investors with a high tolerance for risk.
JPMorgan also warns customers who want to purchase BlackRock’s iShares Bitcoin Trust (IBIT) ETF that it is a high-risk asset. JPMorgan is an approved participant of BlackRock’s IBIT ETF
JPMorgan interface throwing this warning when you try to buy BlackRock's $IBIT BTC ETF.
We get it, JPM, the boss hates Bitcoin for political reasons, but you are also named as an authorized participant in BlackRock's offering, so just accept your fate already pic.twitter.com/GRja1q24Wx
— Dan McArdle (@robustus) January 11, 2024
Despite Vanguard opting out, trading in spot Bitcoin ETFs got off to a roaring start on Jan. 11 with volume hitting some $4.6 billion and BlackRock raking in more than $1 billion of that.
Also Read
- BlackRock, Fidelity And Grayscale Dominate Spot Bitcoin ETF Trading On First Day
- Ethereum Price Surges On Hopes That Bitcoin’s ETF Breakthrough Opens The Door For ETH ETFs
- SEC Approves Bitcoin ETFs, But Gary Gensler Makes It Clear His War On Crypto Isn’t Over
Most Searched Crypto Launch - Pepe Unchained
- Layer 2 Meme Coin Ecosystem
- Featured in Cointelegraph
- SolidProof & Coinsult Audited
- Staking Rewards - pepeunchained.com
- $10+ Million Raised at ICO - Ends Soon
Join Our Telegram channel to stay up to date on breaking news coverage