Bitcoin exchange-traded funds (ETFs) have been generating significant buzz in the market, but one major American player, Vanguard, has chosen not to allow its customers to trade these products on its platform.
Vanguard, the world’s second-largest asset manager with over $7.2 trillion in assets under management, confirmed that it would not offer spot Bitcoin ETFs for purchase on its platform.
A company spokesperson stated that Vanguard has “no plans to offer Vanguard Bitcoin ETFs or other crypto-related products.”
The firm’s core focus remains on asset classes such as equities, bonds, and cash, which it considers the foundation of a well-balanced, long-term investment portfolio.
While the Securities and Exchange Commission recently approved 11 Bitcoin ETF issuers to list their products on US exchanges, Vanguard’s decision is not unique.
Several other major brokerage firms, including Citi, Merill Lynch, Edward Jones, and UBS, have also faced complaints from customers regarding limited access to Bitcoin ETFs.
Merill Edge, the capital markets division of Bank of America, is still evaluating whether to offer these products.
However, UBS, headquartered in Zurich, plans to offer Bitcoin ETFs to some of its wealth management clients with brokerage accounts on an unsolicited basis.
Citi confirmed that it currently provides institutional clients with access to the newly approved Bitcoin ETFs for execution and asset servicing, and it is evaluating the products for individual wealth clients.
Despite some giants hesitating, other financial institutions have embraced Bitcoin ETFs. Charles Schwab, a major American brokerage, has decided to offer them, while Robinhood, a retail-centric platform, made all 11 listed Bitcoin ETFs available to its customers from the first day of listing.
Johann Kerbrat, the GM of Robinhood Crypto, expressed confidence in the cryptocurrency industry’s future and the benefits of increased Bitcoin access through ETFs.
In addition to ETFs, Robinhood offers cryptocurrencies directly to its customers.
In conclusion, Vanguard’s decision not to offer Bitcoin ETFs reflects its strategic focus on traditional asset classes.
While some financial giants remain cautious, others see the potential of Bitcoin ETFs to provide broader access to the crypto market, marking a significant milestone in the adoption of cryptocurrencies in the mainstream financial sector.