Vanguard’s outgoing CEO sticks to anti-Bitcoin ETF stance despite questions
Vanguard Group CEO Tim Buckley has maintained his strong opposition to Bitcoin exchange-traded funds (ETFs) despite criticism from clients and ongoing questions about the company's proposed plans.
In a recent video published by Vanguard, Buckley cautioned against including Bitcoin (BTC) ETFs in retirement investment plans due to the asset's volatility.
“We don't believe it is, like someone in a long-term portfolio of a Bitcoin ETF is someone saving for retirement. It is speculative wealth.”
Buckley argues that bitcoin is questionable as a store of value, noting that bitcoin experienced a significant decline on its side during the 2022 stock market crash.
“When stocks were hit in the recent crisis, Bitcoin went right along with them. And so it's speculative. It's hard to imagine how it will be in a long-term portfolio,” he said.
In the year In 2021, Bitcoin reached an all-time high of $69,000, surpassing $73,835 this week alone. However, by 2022, Bitcoin has declined significantly, dropping to $16,000.
The S&P 500 was It fell 21 percent in the first half of 2022, with much of the blame tied to the Federal Reserve's interest rate hike.
When asked when the investment firm might offer Bitcoin ETFs to clients, Buckley said the company is adamant it won't change its position “unless the asset class changes.”
Related: Wealth Manager Cetera Adds Spot BTC ETF to Platform with Training
Following the United States Securities and Exchange Commission's approval of the 11 Spot Bitcoin ETF on January 10, Vanguard quickly announced its decision not to offer the product to its clients.
On January 12, Cointelegraph reported that Vanguard has no plans to offer “Vanguard Bitcoin ETFs or other crypto-related products.”
Existing customers, especially those in the crypto industry, protested the decision.
Coinbase's senior engineering manager, Yuga Koehler, said he would switch his Roth 401(k) savings at Vanguard to Fidelity, one of the approved spot Bitcoin ETF applicants.
“Vanguard's paternalistic ban on Bitcoin ETFs doesn't fit with my investment philosophy,” Kohler said on X.
However, even if the company has no intention of offering a crypto product, it should still have indirect exposure to Bitcoin as it is MicroStrategy's second largest institutional owner.
On January 12, Cointelegraph reported that Vanguard has an 8.24% stake in the company.
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