Vanguard, a major player in the investment management industry with more than $7 trillion in assets, has taken a surprising stance by blocking clients' access to Bitcoin exchange-traded funds (ETFs), according to multiple reports. The move comes as a marked departure from the growing trend of institutional interest and adoption of financial products linked to Bitcoin.
Vanguard says it has no plans to offer Bitcoin exchange-traded funds or crypto-related products, The Block reports. The company noted that the high volatility nature of Bitcoin conflicts with the company's goal of helping investors get “real returns” over the long term.
Reports from clients indicate that while they cannot buy the newly listed spot ETFs, they can sell shares of GBTC, Grayscale's spot Bitcoin ETF. One customer reportedly spoke with a company representative, who said, “At this time, we do not allow the purchase of these products because they do not fit with Vanguard's investment philosophy.”
Vanguard's decision to restrict client access comes just one day after the SEC approved Bitcoin exchange-traded funds for the first time, which saw trading volume of more than $2.3 billion on launch day. It remains to be seen whether the popular asset manager will back down and allow clients to participate in the booming Bitcoin market.
