“We don’t launch crypto ETFs.”
Vanguard Group's second largest issuer of exchange-traded funds (ETFs), the cryptocurrency ETF, plans to ride out the gold rush, Vanguard CEO Salim Ramji said.
“We're not launching crypto ETFs,” Ramji said in an Aug. 14 interview with ETF.com.
With nearly $2.7 trillion in assets under management (AUM), Vanguard is the world's second-largest ETF sponsor behind Blackrock, according to data from stockanalysis.com. Ramji, a former BlackRock executive, was named CEO of Vanguard on May 14, replacing former chief Tim Buckley.
“I don't record competitors. It is very important for a company to remain consistent with their identity,” said Ramji.
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Vanguard's absence is notable among crypto ETF lists populated by leading ETF sponsors, including BlackRock. In January, BlackRock launched the iShares Bitcoin Trust (IBIT), followed by the iShares Ethereum Trust (ETHA) in July. The funds now command about $21 billion and $800 million in AUM, respectively, according to Morningstar.
Bitcoin ETFs See Record-Breaking Revenues in 2024 The fund has seen one-year inflows three times larger than any ETF in the history of ETFs, Dave Lavallee, global head of ETFs at asset manager Greyscale, said in August. 12. “We're talking about massive, massive adoption.”
The adoption of crypto ETFs by established wealth managers such as Morgan Stanley has legitimized the asset class for investment managers and broadened its reach.
“Many giant investors such as sovereign wealth funds and pension funds are ready to invest in ETFs,” said Kathleen Tischhauser, head of investment research at crypto bank Sygnum, Cointelegraph said. “Crypto will eventually become part of a model portfolio with products tailored to different risk profiles.”
Vanguard plans to differentiate itself by focusing on products designed to protect investors against lower risks.
“We've focused on helping our customers accumulate assets, but the industry hasn't done much to help with failures,” Ramji said. “I want to focus on new products like retirement income and other different tools and advice.”
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