The new chief executive of United States investment giant Vanguard, Salim Ramji, has affirmed the company’s decision not to launch a spot Bitcoin exchange-traded fund (ETF).
Ramji, former head of BlackRock’s global ETF business, emphasized Vanguard’s commitment to consistency in its investment philosophy, stating that crypto-related investment products do not align with it.
Ramji expressed support for Vanguard’s current stance, citing Chief Investment Officer Greg Davis’ explanation as logical and consistent with the company’s investment philosophy.
Ramji was instrumental in launching BlackRock’s spot Bitcoin ETF in January, the iShares Bitcoin Trust (IBIT), which has accumulated $18 billion in assets under management.
Ramji’s move to Vanguard sparked speculation about potential changes he might introduce. However, Vanguard, with $8.6 trillion in assets under management (AUM), did not follow suit with Bitcoin ETF launches like its competitors.
Unlike its rivals, Vanguard views crypto as a speculative and immature asset class, choosing not to offer a Bitcoin ETF.
While it’s unlikely Ramji will introduce a Vanguard spot Bitcoin ETF, Bloomberg ETF analyst James Seyffart suggests he may reconsider allowing clients to purchase other spot Bitcoin ETFs on Vanguard’s brokerage platform.
Tim Buckley, Vanguard’s outgoing CEO, stated in March that he didn’t believe Bitcoin ETFs were suitable for long-term retirement portfolios, considering them speculative assets.
Vanguard faced pressure from clients after rival firms launched Bitcoin ETFs. In January, some clients threatened to close their accounts due to Vanguard’s stance on spot Bitcoin ETFs.
Meanwhile, Vanguard holds an indirect stake in Bitcoin through its investment in MicroStrategy, where it is the second-largest institutional shareholder.
Rival investment firms are experiencing positive flows following Bitcoin’s price surge to over $66,000 on May 16. Preliminary data indicates over $300 million in net inflows across all U.S spot Bitcoin ETFs on May 15, excluding BlackRock’s IBIT.
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