Vanguard Refuses to Support Bitcoin ETFs. Users React

Vanguard opted against offering its users access to Bitcoin ETFs, which began trading on Thursday 11th, after being approved on Wednesday 10th.

Vanguard’s decision faced massive backlash from its users. Some clients have chosen to close their brokerage accounts and transfer their funds to other platforms. Let’s explore more about this news.

Vanguard Stands Against Bitcoin ETFs, Prompting User Responses

Vanguard reportedly claimed that spot Bitcoin ETFs do not align with its traditional offerings. The firm explained in a statement to the Wall Street Journal: “Spot bitcoin ETFs will not be available for purchase on the Vanguard platform. We also have no plans to offer Vanguard bitcoin ETFs or other crypto-related products.”

Some crypto enthusiasts who have Vanguard accounts expressed dissatisfaction with Vanguard’s stance on cryptocurrency. Many decided to use the company’s more crypto-friendly rivals.

Another user switching their Roth 401(k) funds from Vanguard to Fidelity is Yuga Cohler, senior engineering manager at Coinbase. Cohler explained that his investment philosophy does not align with Vanguard’s “paternalistic blocking of Bitcoin ETFs. In addition, Bitcoin analyst Neil Jacobs stated he is also in the process of pulling out of Vanguard. He stated that the asset manager made a “terrible business decision.”

Await Introduction by Other Players in the Market

Reports have confirmed that clients of investing firms Citi, Merill Lynch, Edward Jones, and UBS reported they were also unable to buy spot Bitcoin ETFs on those platforms.

Fox Business reporter Eleanor Terrett, citing an unknown source, claims that Merrill Lynch is holding off on offering the purchase of Bitcoin products until it can determine whether the spot Bitcoin ETFs trade efficiently.

Interestingly, Bitcoin ETFs made an impressive start on their first day of trading. Reports note that Bitcoin ETFs traded over $4 billion on Thursday, reflecting interest in the product.


The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.


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