Global asset management giant Vanguard, which has always been firm in not offering cryptocurrency-related products, recently submitted an application to the U.S. Securities and Exchange Commission (SEC) for a new fund. In the application documents, Vanguard mentioned digital currencies and provided definitions related to digital currencies, which the community sees as a precursor to a change in its stance on cryptocurrencies.
Background:
Vanguard’s New CEO Throws Cold Water: Will Not Offer Bitcoin ETF or Cryptocurrency Trading Services
Vanguard, the world’s second-largest asset management giant, recently submitted an application to the U.S. Securities and Exchange Commission (SEC) for Vanguard Specialized Funds, seeking to track the performance of a benchmark index. This benchmark index aims to measure the investment return of common stocks of companies that consistently increase their dividends over time.
It is worth noting that, according to Coingape’s report, Vanguard also mentioned digital currencies in the submitted application documents and provided some clear definitions related to digital currencies.
Vanguard describes “digital currencies” as a type of digital asset that serves only as a store of value, a medium of exchange, or a unit of account. Digital currencies are further classified as digital assets that are not issued or guaranteed by any jurisdiction, central bank, or public institution.
According to Vanguard’s definition, digital assets rely on algorithmic technology to regulate the generation of new units of digital assets, and transactions involving digital assets are recorded on decentralized networks or distributed ledgers.
Vanguard distinguishes “digital currencies” from “digital security tokens.” “Digital security tokens” are defined as digital assets that are neither digital currencies nor digital utility tokens. The value of digital security tokens primarily comes from or represents the rights of independent assets or asset pools.
Vanguard also provides a definition for “digital utility tokens,” describing them as digital assets that provide access to specific networks, products, or services.
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Vanguard’s New CEO Previously Stated That They Would Not Offer Bitcoin ETF
Previously, Vanguard drew widespread criticism from the cryptocurrency community for refusing to provide Bitcoin spot ETF trading services to customers and no longer accepting purchases of cryptocurrency products in January of this year. This even led to boycotts and capital withdrawals.
Later, Tim Buckley, the CEO with a clear anti-cryptocurrency stance, announced his retirement at the end of the year in March. Salim Ramji, a former BlackRock executive who was instrumental in the launch of Bitcoin spot ETFs, was announced as the new CEO of Vanguard in May and will take office on July 8th. Due to Salim Ramji’s experience in leading BlackRock’s global iShares business, there is anticipation in the community that Vanguard’s cryptocurrency policy may change.
However, Salim Ramji recently poured cold water on the market’s expectations that Vanguard may offer its own Bitcoin spot ETF, stating that not providing Bitcoin spot ETF services to customers is completely in line with Vanguard’s investment philosophy. He emphasized that this is a logical and consistent viewpoint.
However, as Vanguard clarifies the definition of digital currencies in its new fund application, the idea that Vanguard may be considering adjusting its cryptocurrency policy becomes even stronger. The community remains optimistic that Salim Ramji, who has experience leading BlackRock’s global ETF business in the long run, may change Vanguard’s stance.
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