- Tim Buckley maintains opposition to Bitcoin ETFs, citing volatility and speculative nature.
- Despite inquiries and criticism, Vanguard stands firm on decision not to offer Bitcoin ETFs to customers.
- Vanguard holds a significant stake in MicroStrategy, the second-largest institutional holder of Bitcoin, despite its reluctance to offer crypto products.
Vanguard CEO Tim Buckley remains resolute in his opposition to Bitcoin exchange-traded funds. This is mounting pressure from customers and inquiries regarding the firm’s stance.
Despite competitors offering such products, Buckley maintains skepticism about including Bitcoin ETFs in long-term retirement portfolios, citing the asset’s volatile nature.
Cautionary Tone from Vanguard
In a recent video published by Vanguard, Buckley cautioned against the inclusion of Bitcoin ETFs in retirement investment plans. This is highlighting Bitcoin’s speculative nature and questioning its role as a store of value. He pointed to Bitcoin’s correlation with the stock market crash of 2022 as evidence of its speculative nature and suitability for long-term portfolios.
“We don’t believe it belongs, like a Bitcoin ETF belongs in a long-term portfolio of someone saving for their retirement. It’s a speculative asset.”
Tim Buckley
Bitcoin’s tumultuous price history, reaching highs of over $69,000 in 2021 before plummeting to under $16,000 in 2022, adds weight to Buckley’s argument.
Despite inquiries from customers, particularly those in the crypto industry, Vanguard has stood firm on its decision not to offer Bitcoin ETFs to its customers. Further, citing a commitment to its current stance “unless the asset class changes.“
“When stocks got hammered in the recent crisis, Bitcoin went right with them. And so it is speculative. Really tough to think about how it belongs in a long-term portfolio,”
Tim Buckley
Competitive Landscape and Customer Actions
Following the U.S. Securities and Exchange Commission’s approval of several spot Bitcoin ETFs, Vanguard swiftly announced its decision not to offer the product.
This decision faced backlash from existing customers, with some expressing intentions to switch to competitors like Fidelity, which offer approved spot Bitcoin ETFs.
In 2021, Bitcoin soared to a record high of over $69,000, recently surpassing this milestone with a peak of $73,835. However, its value sharply declined in 2022, plunging to under $16,000. During this time, the S&P 500 also experienced a significant 21% drop in the first half of 2022. This partly attributed to the United States Federal Reserve’s interest rate increases.
Despite inquiries about the potential introduction of spot Bitcoin ETFs to their offerings, Buckley, affirmed the firm’s steadfast stance, stating they would not change their position “unless the asset class changes.“
Following the U.S. Securities and Exchange Commission’s approval of 11 spot Bitcoin ETFs on January 10, Vanguard promptly announced its decision to abstain from offering the product to its customers.
However, Vanguard remains firm in its position. Despite indirect exposure to Bitcoin through its substantial stake in MicroStrategy, the second-largest institutional holder of Bitcoin.
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