Vanguard, the world's second-largest asset manager with about $8 trillion in assets under management, said it would not allow its clients to buy any of the 11 recently launched spot Bitcoin ETFs. On Thursday, Vanguard customers who attempted to purchase Bitcoin ET received a message stating that the transaction could not be completed. This is in stark contrast to other brokerage firms such as Charles Schwab, Fidelity, and E*Trade, which all allow their clients to purchase newly approved Bitcoin ETFs.
In response to media inquiries, Vanguard Group said: "While we continue to evaluate our brokerage offers and new products entering the market, the spot Bitcoin ETF will not be available for purchase on the Vanguard platform. We also have no plans to offer the Vanguard Bitcoin ETF or other crypto-related products."
"Our view is that these products are inconsistent with our focus on asset classes such as stocks, bonds and cash, which Vanguard views as the building blocks of a balanced long-term investment portfolio."
Vanguard's main rival, BlackRock, took the opposite view and launched its own spot Bitcoin ETF, which began trading under the ticker "IBIT" on Thursday.
Vanguard's position is not far removed from that of SEC Chairman Gary Gensler. Gensler made some harsh comments about Bitcoin in a statement related to the Bitcoin ETF approval on Wednesday.
Bitcoin, he said, is "primarily a speculative, volatile asset that is also used for illegal activities, including ransomware, money laundering, sanctions evasion and terrorist financing."
Gensler added: “While we approved the listing and trading of certain spot Bitcoin ETP stocks today, we do not approve or support Bitcoin. Investors should remain cautious about the myriad risks associated with Bitcoin and cryptocurrency-related products.”