Tim Buckley, CEO of The Vanguard Group, has reiterated his strong opposition to Bitcoin exchange-traded funds (ETFs), despite facing criticism from customers and ongoing inquiries about the firm’s potential plans to offer them.
As reported earlier by TheCoinRise, competitors like Charles Schwab, an American multinational financial services company that offers financial services, are planning the debut of their own spot Bitcoin exchange-traded funds (ETFs) in the United States in the near future.
Vanguard is Skeptical of Bitcoin
In a recent video released by Vanguard, Buckley cautioned against including Bitcoin ETFs in retirement investment plans, citing the asset’s volatile nature.
“We don’t believe it belongs, like a Bitcoin ETF belongs in a long-term portfolio of someone saving for their retirement. It’s a speculative asset,” Buckley asserted.
Bitcoin’s Status as Store of Value is Questionable
He further argued that Bitcoin’s status as a store of value is questionable, pointing to its susceptibility to significant declines during market downturns, such as the stock market crash of 2022.
“When stocks got hammered in the recent crisis, Bitcoin went right with them. And so it is speculative. Really tough to think about how it belongs in a long-term portfolio,” Buckley emphasized.
While Bitcoin reached an all-time high of over $69,000 in 2021, followed by surpassing $73,835 more recently, it also experienced a sharp decline in 2022, dropping to under $16,000. On the other hand, the asset was above $70K, making a new ATH in 2024. This volatility has raised concerns among traditional financial institutions like Vanguard.
Vanguard has no Plans of Spot BTC ETF
Despite inquiries about when Vanguard might offer spot Bitcoin ETFs, Buckley stated that the firm remains steadfast in its decision “unless the asset class changes.”
Following the US Securities and Exchange Commission’s approval of 11 spot Bitcoin ETFs on January 10, Vanguard promptly announced its decision not to offer the product to its customers.
This stance faced pushback from existing customers, particularly those in the crypto industry. Coinbase’s senior engineering manager, Yuga Cohler, expressed his disapproval by announcing his intention to transfer his Roth 401(k) savings from Vanguard to Fidelity, one of the approved spot Bitcoin ETF applicants.
“Vanguard’s paternalistic blocking of Bitcoin ETFs does not fit in with my investment philosophy,” Cohler remarked.
Exposure to BTC
Despite Vanguard’s reluctance to offer crypto products, the firm still maintains significant indirect exposure to Bitcoin, being the second-largest institutional holder of MicroStrategy, a company heavily invested in Bitcoin.
As Vanguard remains resolute in its position against Bitcoin ETFs, the debate surrounding the inclusion of cryptocurrencies in traditional investment portfolios continues to unfold, reflecting the evolving landscape of digital assets in mainstream finance.
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