As the world’s largest asset management firm, BlackRock, has grown its Bitcoin ETF to a staggering $69 billion, and Morgan Stanley quietly positions itself for crypto trading, managing about $10 trillion in assets, Vanguard Group has closed its doors to cryptocurrencies. This financial giant has banned clients from trading crypto assets on its platform, citing a misalignment with their investment positioning.
Amidst Bitcoin’s price surge past $111,000 and traditional Wall Street financial institutions lining up to enter the crypto asset market, investment giant Vanguard has firmly distanced itself from crypto assets, prohibiting clients from trading crypto ETFs on its platform. According to a Blockworks report on May 26th, BlackRock’s iShares Bitcoin Trust (IBIT), the world’s largest asset management company, managed nearly $69 billion in assets as of Wednesday, becoming the fastest-growing ETF in history. However, Vanguard Group, managing about $10 trillion in assets, has chosen a completely different path. In January 2024, when the first batch of spot Bitcoin ETFs emerged in the United States, Vanguard did not participate. When these ETFs began trading, the company stated that its platform would not list these funds. The group also banned ETF trading for Ethereum. Vanguard stated that crypto ETFs “do not align with our focus on asset classes such as stocks, bonds, and cash, which Vanguard views as the foundational elements for building a balanced long-term investment portfolio. ” In March of this year, at the Exchange ETF conference, a Vanguard spokesperson reiterated to Blockworks that the company’s stance on crypto has not changed. The group’s founder, John Bogle, advised people in 2017 to “avoid Bitcoin like the plague.” In contrast, several Wall Street heavyweights have made a 180-degree shift in their attitude towards cryptocurrencies. BlackRock CEO Larry Fink once called Bitcoin a “money laundering index,” but now describes it as “a category of assets that protect yours in times of economic uncertainty and geopolitical risk. ” According to reports, almost all major traditional financial institutions are seeking opportunities in cryptocurrencies: BlackRock: Launched a private Bitcoin trust in 2022, with spot ETF management scale reaching $69 billion in 2024. State Street Global Advisors: Collaborated with Galaxy Digital to launch a diversified actively managed crypto investment portfolio. Fidelity: Established a digital asset division in 2018, with its Bitcoin ETF managing about $20 billion in assets. Franklin Templeton: Launched a BTC ETF and entered the tokenized currency market fund sector. Charles Schwab: Allows investors to trade crypto ETFs on its platform. Morgan Stanley: Reportedly considering adding cryptocurrency trading on its E*Trade platform. Industry experts: Vanguard’s choice is “puzzling.” Ric Edelman, founder of the Digital Assets Council, stated that Vanguard’s decision to distance itself from crypto products is “puzzling” and lacks business sense.Bitwise Chief Investment Officer Matt Hougan has pointed out the irony: Vanguard was once on the opposite side of financial innovation. When Vanguard launched index funds in the 1970s, they were ridiculed by the mainstream asset management industry as ‘un-American’ and ‘Bogle’s folly’. They know what it feels like to reject innovation and then realize the mistake. However, on the issue of cryptocurrencies, they are repeating the same mistake. Industry observers also note that Vanguard’s stance may change.
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