Vanguard Opens Trading for Spot Bitcoin ETFs Despite Continued Crypto Skepticism
Vanguard Group has recently permitted its clients to trade spot Bitcoin ETFs on its platform, marking a notable shift despite the firm's ongoing skepticism about cryptocurrency as a productive investment.
John Ameriks, Vanguard's global head of quantitative equity, described Bitcoin as a digital Labubu — a term used to highlight its lack of income, compounding, and cash flow features. This perspective underscores Vanguard's cautious stance on digital assets.
Earlier this month, Vanguard expanded platform access to third-party crypto ETFs and mutual funds, allowing clients to gain exposure to Bitcoin, Ether, and other tokens. However, this was done without launching any proprietary crypto products of its own. Additionally, Vanguard will not provide advisory services on whether clients should buy or sell digital-asset ETFs; trading decisions remain at the discretion of individual investors.
The decision to allow trading comes amid intense competition from firms like BlackRock and Fidelity, which have attracted substantial inflows into their crypto ETFs. For instance, BlackRock’s iShares Bitcoin Trust has amassed approximately $70 billion in assets.
Leadership changes at Vanguard have also influenced this move. With Salim Ranji taking over as CEO earlier this year, the company has expressed recognition of blockchain's potential. Nonetheless, Vanguard maintains it has no plans to develop its own crypto products.
Currently, Vanguard serves more than 50 million clients and manages about $11 trillion in assets. The firm treats crypto funds as non-core assets within its US brokerage platform and holds indirect Bitcoin exposure as a large institutional investor within a broader strategy.
