- Vanguard, a $7.7 trillion asset manager, will not offer spot Bitcoin ETFs despite SEC approval, calling digital assets’ investment case “weak”.
- Other major firms like BlackRock and Fidelity are launching spot Bitcoin ETFs after the SEC’s reversal, with BlackRock potentially bringing in $2 billion on day one.
- While the SEC has opened the floodgates to spot Bitcoin ETFs, Vanguard is abstaining, putting it at odds with some competitors in embracing crypto products.
Vanguard, the $7.7 trillion asset management firm, has announced they will not offer Spot Bitcoin exchange-traded funds (ETFs). This is despite the SEC granting approval for these products yesterday.
Vanguard’s Stance
Before the SEC approval, Vanguard stated they had no plans to offer spot Bitcoin ETFs or any other crypto-related products. The company called the investment case for digital assets “weak,” according to BlockWorks.
Vanguard is among many firms currently blocking clients from trading the newly approved Bitcoin ETFs. A spokesperson reiterated their skeptical perspective, saying “Unlike stocks and bonds, most crypto assets lack intrinsic economic value and generate no cash flows. And cryptocurrency’s high volatility runs counter to our goal of helping investors generate positive real returns over the long term.”
Other Major Players Jump In
The SEC’s approval of spot Bitcoin ETFs is a major reversal after a decade of rejections. Trading began Thursday morning with volumes over $17 billion in the first hour.
While Vanguard abstains, other major firms like BlackRock and Fidelity have already issued spot Bitcoin ETFs. Experts predict BlackRock could break records, bringing in $2 billion in inflows on day one.
So Vanguard’s decision runs counter to some of its largest competitors in the asset management space. The SEC has opened the floodgates to spot Bitcoin ETFs, but not everyone is rushing in.
