Will Vanguard’s Anti-Bitcoin Stance Continue?

The famous investment company Vanguard is expected to reconsider its current anti-Bitcoin position in the near future. However, recent actions by the asset manager demonstrate a deep commitment to this position.

Eric Balchunas, a senior analyst at Bloomberg, predicts that Vanguard's traditionally anti-crypto stance may gradually soften in the coming years.

Vanguard's anti-Bitcoin position to soften

Balchunas, acknowledging Vanguard's historical steadfastness with cryptocurrencies as a “brand,” suggested a possible change in philosophy.

He pointed out that Vanguard's pursuit of diversified investments could lead to a rethinking of alternative asset classes such as Bitcoin and other cryptocurrencies, which is essential to the growing wealth growth.

“Vanguard's anti-Bitcoin ETF position is completely on brand and would make Bogle proud. That said, I think as they build their advisory business over the next few years, they will have to find alternative asset classes.” Balchunas added.

Read more: Everything BlackRock CEO Larry Fink said about Bitcoin

Recently, Vanguard drew attention for its decision to limit client access to its newly launched Bitcoin ETFs. BeenCrypto reports that many Vanguard customers have moved their funds to alternative companies in response to these restrictions.

Discontinuation of Cryptocurrency products

Although industry trends point to more interest in cryptocurrencies, Vanguard is moving in the opposite direction, announcing plans to remove Bitcoin futures ETFs from the platform.

A Vanguard spokesperson said the company no longer accepts purchases of cryptocurrency products, including Bitcoin futures ETFs. This decision allows it to refocus on products that align more closely with its core values.

“In addition to Bitcoin ETFs not being available for purchase on Vanguard's platform, effective immediately, Vanguard will no longer accept purchases of crypto products, including Bitcoin Futures ETFs. “This change will allow us to focus on providing core products and services that are consistent with our commitment to serving the needs of long-term investors,” said a Vanguard spokesperson.

Vanguard's current stance echoes historical skepticism about cryptocurrencies. In the year In 2017, founder Jack Bogle described Bitcoin as an “epidemic,” underscoring the firm's enduring position for crypto.

However, contrary to the skepticism of cryptocurrencies, the company has invested in microstrategy stocks. MicroStrategy, known as the primary public holder of Bitcoin, has approximately 190,000 BTC, worth approximately $6 billion.

Read more: Who will have the most Bitcoins in 2024?

Meanwhile, according to Yahoo Financial data, Vanguard currently holds more than 1 million MSTR shares worth $547 million as of September 2023. This makes him the second largest institutional shareholder in the company, boasting an ownership stake of 8.24%.