Bitcoin and Ethereum ETFs still off the table for Vanguard – it’s not surprising

For
Vanguard,
crypto
assets
like
Bitcoin
and
Ethereum
are
“more
of
a
speculation
than
an
investment,”
and
chasing
speculative
assets
will
never
be
the
fund’s
investment
philosophy.

No
doubt

Vanguard
constantly
says
no
to
Bitcoin
exchange-traded
funds
(ETFs).

There
is
no
exception
for
Ethereum
ETFs.

Earlier
this
month,
Vanguard
reportedly

appointed
ex-BlackRock
ETF
head
Salim
Ramji
as
its
next
CEO.
The
transition,
slated
for
July,
sparked
speculation
that
the
fund
might
be
close
to
revising
its
stance
on
crypto-related
investment
products.

However,
Ramji
made
it
clear
that
the
fund
would
not
file
for
a
Bitcoin

ETF
and
refused
to
offer
any
Bitcoin
ETF
on
its
brokerage
platform.

The
firm’s
view
was
reiterated
after
the
SEC’s

approval
of
spot
Ethereum
ETFs
in
the
US.
On
Wednesday,
Vanguard

confirmed
to
the
public
that
no
spot
Ethereum
fund
would
be
available
for
purchase.

Commenting
on
Vanguard’s
recent
statement,
Bloomberg
ETF
analyst
Eric
Balchunas
said
Vanguard’s
stance
could
be
frustrating,
but
it
would
be
better
to
accept
it
and
“move

on”
because
it
is
not
a
typical
asset
manager
who
seeks
to
maximize
revenue.

“They
[are]
more
like
a
co-op,
and
they’ve
taken
in
nearly
billion
a
day
for
over
a
decade,
and
so
they
[are
not]
envious
of
other
people’s
hit
ETFs,”
Balchunas

stated.

The
expert
added
that
Vanguard
could
be
overprotective
when

it
comes
to
restricting
investors
from
buying
crypto
ETFs.

“It
seems
like
they
[are]

playing
Nanny
role.
Their
investors
are
the
smartest
money
on
the
planet

IMO,
they
are
not
easily
misled
children,
they
can
handle
having
choices,”
Balchunas
wrote.

Will
history
be
on
Vanguard’s
side?

Organizations
each
have
their
own
implicit
and
explicit
values
and
norms.
For

Vanguard,
its
products
need
to
meet
investors’
long-term
needs.
The
fund
prioritizes
investor
protection
even
if
it
means
sacrificing
short-term
gains.

Looking
back,
avoiding
trendy
investments
was

Vanguard’s
right
decision.
In
the
past,
the
fund
refused
to
chase
“hot”
options
like
government-plus
funds,
tactical-allocation
funds,
or
internet
funds,
which
all
crashed
and
burned.

Its
commitment
to
a
sound
investment
philosophy
pays
off
in
nearly
all
cases.
If
it
still
contributes
to
the
firm’s
success,
an
abrupt
shift
may
not
be
necessary.

It
remains
unknown
if
Vanguard
will
change
its

judgment
on
Bitcoin
in
the
future.
Bitcoin
may
need
to
prove
itself
as
a
true
store
of
value,
like
gold,
to

get
a
place
in
the
fund’s
portfolio.

Perhaps
there’s
a
glimmer
of
hope
there.