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Vanguard’s CEO Tim Buckley Opposes Bitcoin ETFs in Response to Customer Concerns and Market Instability
Tim Buckley, the CEO of The Vanguard Group, continues to oppose the launch of Bitcoin exchange-traded funds (ETFs), even in the face of customer dissatisfaction and ongoing inquiries regarding the company’s potential intentions for such products.
Buckley’s position was reiterated in a video published by Vanguard, where he cautioned against the inclusion of Bitcoin ETFs in retirement investment portfolios, pointing to the cryptocurrency’s unpredictable nature.
He stated, “We don’t believe it belongs, like a Bitcoin ETF belongs in a long-term portfolio of someone saving for their retirement. It’s a speculative asset.”
Questioning Bitcoin’s dependability as a store of value, Buckley referenced its performance during the 2022 stock market decline, when Bitcoin’s value fell alongside the broader market.
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“When stocks were severely impacted in the recent crisis, Bitcoin followed suit.
And so it is speculative.
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It’s really difficult to consider how it fits into a long-term portfolio,” he elaborated.
Despite Bitcoin achieving new peaks, reaching a record value of $73,835 after previously exceeding $69,000, its value saw a significant drop in 2022, falling below $16,000 amid a 21% decline in the S&P 500 during the first half of the year, largely due to the interest rate hikes by the United States Federal Reserve.
Buckley emphasized that Vanguard has no plans to alter its position on offering spot Bitcoin ETFs to its clients, asserting that the firm’s stance would only change if the characteristics of the asset class itself were to evolve.
This decision came shortly after the US Securities and Exchange Commission approved 11 spot Bitcoin ETFs on January 10, with Vanguard quickly announcing on January 12 its choice to refrain from offering Bitcoin ETFs or any cryptocurrency-related products.
Despite this firm position, some Vanguard customers, particularly those from the cryptocurrency sector, have voiced their dissatisfaction.
Notably, Coinbase’s senior engineering manager, Yuga Cohler, revealed his choice to move his Roth 401(k) savings from Vanguard to Fidelity, criticizing Vanguard’s “paternalistic blocking of Bitcoin ETFs” as inconsistent with his investment philosophy.
Nevertheless, Vanguard retains a significant albeit indirect exposure to Bitcoin, holding an 8.24% stake in MicroStrategy, making it the second-largest institutional investor in the firm.
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The post Why Is Vanguard CEO, Tim Buckley, Firmly Against Bitcoin ETFs Amid Customer Backlash and Market Volatility appeared first on BitcoinWorld.
