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- The asset management firm Vanguard has declared that it will not permit the acquisition of spot Bitcoin exchange-traded funds (ETFs) on its platform.
- Following the firm’s announcement, Vanguard users are threatening to close their accounts.
- Currently, spot Bitcoin ETFs are reportedly unavailable for purchase on the brokerage platforms of Citi, Merrill Lynch, Edward Jones, and UBS.
Despite receiving approval from the U.S. SEC, financial institutions like Vanguard have no intention of facilitating spot Bitcoin ETF trading.
While trading for spot Bitcoin ETFs commenced on January 11 across major U.S. exchanges such as Nasdaq, platforms like Robinhood are expected to quickly incorporate support for these products, some firms have allegedly restricted users from trading them.
A report from The Wall Street Journal on January 11 indicated that Vanguard, the second-largest asset manager after BlackRock, stated it would not provide the new spot Bitcoin ETFs on its brokerage platform, as they do not align with its traditional offerings.
“Spot Bitcoin ETFs will not be available for purchase on the Vanguard platform,” the company communicated in a statement to the WSJ. “We also have no intentions of offering Vanguard Bitcoin ETFs or any other crypto-related products.”
“Our viewpoint is that these products do not fit with our focus on asset classes such as equities, bonds, and cash, which Vanguard considers the foundational components of a well-rounded, long-term investment portfolio.”
See Also: Elizabeth Warren Criticizes SEC’s Decision On Spot Bitcoin ETFs
In addition to not facilitating trading for the newly approved products, Vanguard has disabled the purchasing of Grayscale’s GBTC shares on its platform, as reported by several users on X.
I can confirm, I'm still holding my GBTC from over 3 years ago and I can only sell. I cannot increase my position or convert my GBTC for one of the newer lower-cost ETFs.
BUT DON'T WORRY, I CAN STILL BUY THE PAPER FUTURES ETFs LIKE $BITO. WHAT’S GOING ON?
DO BETTER @Vanguard_Group
— NewWage Crypto (@NewWageCrypto) January 11, 2024
A representative from the firm stated that Vanguard also has no plans to offer a Vanguard Bitcoin ETF or any other cryptocurrency-based products.
An apparent Vanguard customer, Tony Spencer, claims that a spokesperson informed him that Vanguard is not permitting the purchase of spot Bitcoin ETFs because the product “doesn’t align with Vanguard’s investment philosophy.”
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Spencer also asserts that Vanguard only allows investors to sell Grayscale’s primary Bitcoin product, GBTC, which was recently transformed into a spot ETF.
NEW: @Vanguard_Group, the world’s second-largest asset manager after @BlackRock, is reportedly preventing its customers from investing in the new $BTC Spot ETFs, stating that the products “don’t align with Vanguard’s investment philosophy.”
Now we’ll start to see how institutional… https://t.co/LmZodeYyad
— Eleanor Terrett (@EleanorTerrett) January 11, 2024
NEW: @Vanguard_Group, the world’s second-largest asset manager after @BlackRock, is reportedly preventing its customers from investing in the new $The traditional finance giant perceives cryptocurrency volatility as a risk to its long-term positive return strategy for clients, according to comments from the representative.
Notably, Vanguard is one of the largest shareholders of MicroStrategy, the company led by Michael Saylor, which possesses over $8 billion in Bitcoin (BTC).
Moreover, there are indications that other legacy institutions such as Merrill Lynch, Citi Bank, UBS, Wells Fargo Advisors, and Raymond James will also refrain from engaging with spot BTC ETFs — particularly, Merrill Lynch intends to evaluate the performance of the ETFs and potentially reconsider its stance.
SCOOP: @MerrillLynch is also currently not granting their customers access to the $BTC Spot ETFs. According to a source who received guidance from the company earlier this week, Merrill is waiting to see if the ETFs trade effectively before making any changes… https://t.co/Fu810vdWn1
— Eleanor Terrett (@EleanorTerrett) January 11, 2024
In the meantime, Bloomberg’s James Seyffart confirmed over $1.2 billion in volume for spot Bitcoin ETFs within the first 30 minutes of trading.
BTC itself briefly reached $49,000 shortly after trading commenced but has since seen a slight decrease in price to around $46,300, according to Coinstats data.
Even with the SEC’s endorsement for BTC ETFs, long-time Bitcoin skeptic Peter Schiff continues to promote anti-crypto sentiments.
Schiff criticized mainstream media outlets for their coverage of these products and raised concerns about the liquidity following spot BTC ETFs.
Disclaimer: The information provided is not trading advice. Bitcoinworld.co.in holds no liability for any investments made based on the information presented on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
The post Vanguard Have No Plans To Allow Spot Bitcoin ETF Trading On Its Platform appeared first on BitcoinWorld.
