Vanguard’s new CEO confirms no plans to launch Bitcoin ETF despite industry interest

Vanguard’s new CEO, Salim Ramji, has confirmed that the company will not change its decision to refrain from launching a Bitcoin exchange-traded fund (ETF).

Ramji, who previously ran BlackRock’s global ETF business, said in a recent interview with Barron’s that Vanguard is committed to stability, adding that its investment products are about spending money, not investment philosophy.

Ramji expressed support for Greg Davis, Vanguard’s chief investment officer, and his statement regarding the decision to avoid the Bitcoin ETF, saying it is fully consistent with Vanguard’s investment philosophy and represents a solid and stable view.

Ramji leads BlackRock’s ETF launch

Earlier this year, Ramji oversaw the launch of BlackRock’s iShares Bitcoin Trust (IBIT) Bitcoin ETF, which raised $18 billion in assets under management.

Although Ramji expressed personal interest, his move to Vanguard sparked discussions about changes that could be made within the company.

Contrary to Vanguard’s approach, other investment management firms such as Fidelity and nine other institutions have launched Bitcoin funds that have collectively generated more than $12 billion in revenue.

Vanguard, which has $8.6 billion in assets under management (AUM), has taken a different approach, treating mutual funds as speculative investments and accounting for the asset class being in its early stages of growth.

While loomberg ETF analyst James Seyffart doesn’t believe Ramji will announce the Vanguard Bitcoin ETF spot, he says Ramji may reconsider the company’s stance on allowing clients to view other Bitcoin ETF spots on the Vanguard trading platform to buy.
In March, retired Vanguard CEO Tim Buckley said Bitcoin ETFs were not suitable for long-term retirement, labeling them as speculative assets.

Buckley’s comment comes after clients expressed dismay that Vanguard blocked access to Bitcoin ETFs after they were launched by rival firms.

Some Vanguard customers even threaten to close their accounts in retaliation.

Vanguard directly owns Bitcoin It’s worth noting that

Vanguard does not directly own Bitcoin through its stake in MicroStrategy, of which it is the company’s second-largest shareholder.

While Vanguard remains firm in its decision to avoid Bitcoin ETFs, rival investment firms are doing well and Bitcoin regained its $66,000 holding on May 16 with a 7% gain.

Preliminary data from Farside Investors shows net profit on May 15 in the US. Q. spot Bitcoin ETFs have surpassed $300 million, except for BlackRock’s IBIT, whose results have not yet been released.

As reported, Morgan Stanley, one of the leading financial institutions, plans to expand its Bitcoin ETF offering by allowing up to 15,000 brokers to promote these products to clients.

Currently, Morgan Stanley offers Bitcoin ETFs on a non-recommended basis; This means clients must contact their independent advisors to demonstrate their interest in investing.

LPL Financial, a large private equity firm with more than 22,000 employees, announced plans in February to explore the benefits Bitcoin can bring to clients.