Vanguard declines to offer spot Bitcoin exchange-traded funds (ETFs), arguing that high volatility is detrimental to long-term returns.
Spot Bitcoin ETFs were unavailable for purchase by Vanguard brokerage account holders on their first day of trading in the United States. A representative from the firm stated that doing so would be premature due to the extreme volatility of the cryptocurrency market.
A customer service representative from Vanguard stated that Bitcoin ETFs could not be added to the platform due to the fact that they were extremely uncertain, unsupervised, and did not align with the company’s investment strategy for the long term. This came one day after the SEC approved 11 BTC ETFs. Later, a company spokesperson reaffirmed the situation, confirming that the platform did, in fact, lack availability.
As a matter of fact, there are currently no intentions to provide crypto-related products or Vanguard Bitcoin ETFs. The company has long seen the extreme volatility of cryptocurrency prices as an obstacle to its long-term objective of assisting investors in achieving positive actual returns.
Customers attempting to acquire a section of BlackRock’s IBIT were notified that the trade could not be completed. The website stated that securities would not be available for purchase at Vanguard due to regulatory challenges, company activity, and other trading and settlement issues.
This was in contrast to other brokerages, including Fidelity, E*TRADE, and Charles Schwab, where clients with brokerage accounts could buy the spot Bitcoin ETFs. Recognizing the user as an experienced investor with a high-risk tolerance, the Fidelity platform cautioned them that the investment was contingent upon a defined investment agreement when they attempted to purchase shares.