World’s largest asset managers are lining up for spot Bitcoin ETFs, with Grayscale’s court victory marking a significant milestone. However, one trillion-dollar giant is taking an opposite stance from its previous strategy, opting to embargo its clients from these products.
Spot Bitcoin ETFs saw a cumulative volume surpass $3 billion in roughly three hours, fueled partly by profitable liquidations of GBTC positions. However, investors’ profit-taking led to an early peak as Bitcoin’s price, nearing $49,000, turned downward following consecutive selling candles, now at $46,200.
Asset manager Vanguard, with $7 trillion under management, previously allowed its clients to purchase GBTC. Now, the company is advising against and even blocking the acquisition of spot Bitcoin ETFs. Tony Spencer expressed his surprise when confirming the allegations, noting Vanguard’s refusal based on their investment philosophy.
Vanguard’s customer service stated that Bitcoin ETFs are not available on their platform due to being “highly speculative,” “unregulated,” and not aligning with the company’s long-term investment philosophy. They also have no plans to offer Bitcoin ETFs or other crypto-related products, citing the high volatility of cryptocurrencies as contrary to their goal of helping investors achieve positive real returns in the long term.
If Vanguard maintains its stance against spot Bitcoin ETFs and gathers support, the anticipated bright start for these ETFs may not materialize. Meanwhile, retirement funds worldwide may soon be able to offer BTC-indexed products, with GBTC already having secured several permissions during its trust phase. ETFs are seen as the safest route into crypto for cautious investors, especially after the FTX collapse and the complexities of using decentralized wallets.