Vanguard, a major player in the investment management industry with over $7 trillion in assets, has taken the surprising stance of blocking customer access to spot Bitcoin exchange-traded funds (ETFs), according to multiple reports. The move marks a notable departure from the growing trend of institutional interest and adoption of Bitcoin-related financial products.
Vanguard has no plans to offer physical Bitcoin ETFs or cryptocurrency-related products, The Block reported. The company said Bitcoin’s high volatility nature goes against its goal of helping investors earn “real returns” over the long term.
Customer reports indicate that while you cannot buy the newly listed spot ETF, you can sell shares of GBTC, Grayscale’s spot Bitcoin ETF. “Currently, we are not allowing the purchase of this product because it does not fit Vanguard’s investment philosophy,” one customer said in a conversation with a company representative.
Vanguard’s decision to limit customer access comes one day after the SEC approved the first spot Bitcoin ETF. The spot ETF recorded more than $2.3 billion in trading volume on its launch day. It remains to be seen whether the renowned asset manager will withdraw his position and allow his clients to participate in the booming Bitcoin market.