The global second-largest asset management giant, Vanguard, is about to welcome its new CEO, Salim Ramji. As he was a key player in the listing of the BlackRock Bitcoin Spot ETF, this appointment has sparked expectations within the community that Vanguard’s cryptocurrency policy may change. However, he poured cold water on the market today…
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Vanguard’s new CEO declares intention to maintain original stance
Reasons for prohibiting Bitcoin Spot ETF trading
Bitcoin Spot ETF estimated to have over 700 institutional investments, with a scale of 5 billion pounds
Vanguard, the global second-largest asset management company with over $9 trillion in assets under management, received widespread criticism from the cryptocurrency community for refusing to provide Bitcoin Spot ETF trading services to its clients and no longer accepting purchases of cryptocurrency products earlier this year. This even led to boycotts and withdrawals.
Against this background, CEO Tim Buckley announced his retirement in March, generating heated discussion that his anti-cryptocurrency stance may be one of the reasons for his departure.
On the 14th, former BlackRock executive Salim Ramji was appointed as the new CEO and will take office on July 8th. As Ramji was responsible for BlackRock’s global iShares business and played a vital role in the launch and approval of the Bitcoin Spot ETF, this appointment has raised expectations within the community that Vanguard’s cryptocurrency policy may change.
However, in an interview with Barron’s today, Ramji has dashed the hopes of Vanguard offering its own Bitcoin Spot ETF. He stated:
As for why Vanguard does not offer cryptocurrency-related products on its brokerage platform, Janel Jackson, Global Head of ETF Capital Markets, explained at the end of January that Vanguard views cryptocurrencies more like speculation than investment, and this is the root of the company’s decision not to offer cryptocurrency-related products.
Vanguard’s customer service representative has also explained the reasons behind this decision, stating:
The spokesperson further confirmed that there are currently no plans to launch a Bitcoin ETF or other cryptocurrency-related products, emphasizing:
In summary, Vanguard believes that cryptocurrencies are “highly speculative,” “highly volatile,” and “lack regulation,” which do not align with the company’s core investment philosophy. Therefore, Vanguard refuses to provide cryptocurrency product trading services on its platform and has no plans to launch its own Bitcoin ETF or other cryptocurrency-related products.
However, with more and more institutions disclosing their holdings of the Bitcoin Spot ETF in their 13F reports, it can be seen that there is indeed growing interest in Bitcoin among institutions.
As of last Thursday, a total of 563 professional investment firms have reported holding positions in the Bitcoin Spot ETF, with a total value of $3.5 billion. Matt Hougan, Chief Investment Officer at Bitwise and one of the issuers of the Bitcoin Spot ETF, predicts that there may be over 700 institutions disclosing their Bitcoin Spot ETF positions by the submission deadline (15th), with assets under management reaching $5 billion.
In the face of the growing interest in the development of the Bitcoin Spot ETF among institutions, can Vanguard still hold its stance?
Related reading:
US Institutional Holdings Report: A Quick Look at Which Financial Giants Have Entered the Bitcoin ETF Market? 
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