Tim Buckley, the CEO of Vanguard, has reaffirmed the financial behemoth’s opposition to the launch of a spot Bitcoin exchange-traded fund. Buckley, supported by the company’s Chief Investment Officer, Greg Davis, released a video justifying Vanguard’s decision to abstain from the booming Bitcoin ETF market.
Vanguard Boss: Bitcoin Is Too Volatile To Be A Good Long-Term Investment
Buckley claims that Vanguard has been contacted often regarding the possibility of the business eventually providing a spot Bitcoin exchange-traded fund (ETF). Given that the corporation is the second-largest asset manager in the world and has a well-known anti-crypto position, this development is not shocking at all.
Vanguard and Merrill Lynch were the two major financial firms that refused access to these innovative investment funds after the US Securities and Exchange (SEC) approved spot Bitcoin ETFs on January 10. This decision drew criticism from both industry insiders and customers, including Cathie Wood, CEO of Ark Invest.
Buckley explained Vanguard’s position against providing Bitcoin ETFs, claiming that the cryptocurrency functioned as a speculative asset that was not compatible with the company’s investing methodology and unfit for long-term investment. The CEO of Vanguard supported this claim by citing Bitcoin’s decrease in the wake of the stock market meltdown.
According to Buckley:
Something like Bitcoin isn’t a store of value; it’s simply too volatile. It has not been and is quite erratic. With the latest stock market meltdown, bitcoin fell along with stocks. It is, therefore, speculative. It isn’t straightforward to determine where it fits within a long-term investment plan.
The CEO of Vanguard added that they thought Bitcoin did not now fit their criterion, which is that they preferred to invest in assets with palpable “underlying cash flow,” like equities or bonds. Overall, Buckley reiterated the investment company’s choice to forgo the spot Bitcoin ETF until the asset class of the cryptocurrency underwent a shift.
Demand Rises for Bitcoin ETFs Upon
Some other asset managers have welcomed spot Bitcoin ETFs in the face of Vanguard’s conservative approach, realizing that they want to provide diversified investments that meet each client’s specific demands. The financial company Cetera, situated in San Diego, most recently declared the inclusion of four Bitcoin ETFs in their lineup of investment alternatives.
Moreover, the $1.8 billion asset manager Patient Capital has requested permission from the SEC to convert up to 15% of its holdings to Bitcoin ETFs. For the cryptocurrency community, these are fascinating developments because it was anticipated that the introduction of spot Bitcoin ETFs would increase institutional demand for the most significant asset in the market.
During the last two months of trading, spot Bitcoin ETFs have gained a total net flow of $11.95 billion, putting on a spectacular performance thus far. As the leading cryptocurrency looks to recover from the recent two-day price fall, Bitcoin is presently trading at $69,260.35.
