Despite facing criticism and inquiries regarding Vanguard Group’s plans to offer Bitcoin exchange-traded funds (ETFs), CEO Tim Buckley has reiterated his strong opposition to them in a recent video published by Vanguard. Buckley emphasized concerns about the asset’s volatility and speculative nature, particularly in the context of retirement investment plans.
Buckley expressed skepticism about including Bitcoin ETFs in long-term investment portfolios, highlighting their speculative nature. He questioned Bitcoin’s status as a store of value, citing its significant decline during the stock market crash of 2022. According to Buckley, Bitcoin’s price movements during market downturns indicate its unsuitability for long-term investment strategies.
Buckley referenced Bitcoin’s price history, noting its remarkable highs and sharp declines. While Bitcoin reached an all-time high of $69,000 in 2021, it experienced a significant drop to $16,000 in 2022. He highlighted the correlation between Bitcoin’s performance and broader market trends, particularly during the stock market crash of 2022.
Despite inquiries about Vanguard’s potential offerings of spot Bitcoin ETFs, Buckley affirmed the firm’s unwavering stance against them, citing the need for a fundamental change in the asset class to reconsider their position. Vanguard had previously announced its decision not to offer Bitcoin ETFs to customers following the SEC’s approval of 11 spot Bitcoin ETFs.
Existing customers, particularly those in the crypto industry, expressed dissatisfaction with Vanguard’s decision. Some customers, such as Coinbase’s senior engineering manager Yuga Cohler, announced their intentions to switch to other providers offering Bitcoin ETFs. However, Vanguard maintains significant indirect exposure to Bitcoin as the second-largest institutional holder of MicroStrategy.
Vanguard’s CEO Tim Buckley continues to uphold the firm’s opposition to Bitcoin ETFs, citing concerns about volatility and suitability for long-term investment strategies. Despite customer criticism and inquiries, Vanguard remains steadfast in its decision not to offer Bitcoin ETFs unless there are significant changes in the asset class.
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