Vanguard has refused to offer a spot Bitcoin exchange-traded fund (ETF), arguing that high volatility is detrimental to long-term returns.
Vanguard brokerage account holders were unable to purchase spot Bitcoin ETFs on the first day of U.S. trading. Company officials said it would be premature to do so due to extreme volatility in the cryptocurrency market.
Vanguard’s customer service representative stated that Bitcoin ETFs could not be added to the platform because they were extremely uncertain, unsupervised, and inconsistent with the company’s long-term investment strategy. This comes just one day after the SEC approved 11. BTC ETF. A company spokesperson later reaffirmed the situation and confirmed that there was indeed a lack of availability on the platform.
In fact, we currently have no intention of offering cryptocurrency-related products or the Vanguard Bitcoin ETF. The company has long viewed extreme volatility in cryptocurrency prices as an obstacle to its long-term goal of helping investors achieve positive real-world returns.
Customers attempting to acquire BlackRock’s IBIT section were notified that the transaction would not be able to be completed. The website states that securities cannot be purchased from Vanguard due to regulatory issues, company activities, and other trading and settlement issues.
This was in contrast to other brokerage firms, including Fidelity, E*TRADE, and Charles Schwab, which allow customers with brokerage accounts to purchase spot Bitcoin ETFs. The Fidelity platform recognizes that users are experienced investors with high-risk sensitivities, warning users that when they want to purchase stocks, their investments will be subject to defined investment contracts.