Vanguard Group CEO Tim Buckley remains steadfast in his resistance to a Bitcoin exchange-traded fund (ETF) despite continued customer demand and inquiries into the company’s position. In a recent video, Buckley reiterated caution about including Bitcoin ETFs in retirement portfolios due to the asset’s volatility, labeling them speculative and unsuitable for long-term investment strategies.
Buckley pointed out that Bitcoin’s value is not stable, noting that its value fell significantly during the 2022 stock market crash, which contradicts Bitcoin’s perceived status as a store of value. Buckley highlighted the digital currency’s price history, noting that despite Bitcoin hitting all-time highs, including a recent high of $73,835, it has fallen to $16,000 in 2022.
Vanguard’s decision not to offer a Bitcoin ETF comes after the U.S. Securities and Exchange Commission approved 11 spot Bitcoin ETFs on January 11. Despite backlash from customers, including threats to move their investments to competitors like Fidelity, Vanguard has stood firm and said it will not do so. Offer a Bitcoin ETF as long as the asset class does not fundamentally change.
It’s worth noting that Vanguard holds a significant stake in Bitcoin indirectly through its investment in MicroStrategy. MicroStrategy is the second largest institutional holder with an 8.24% stake. Despite this indirect exposure, Vanguard maintains its stance against offering Bitcoin-related products directly to customers.