Despite Vanguard’s ban on crypto ETFs, which prevents their 50 million customers from accessing these funds, the newly launched investment products are thriving without the company.
Bloomberg’s senior ETF analyst Eric Balchunas has criticized Vanguard’s strict stance on crypto investment products, calling it a nanny move on savvy investors.
In a detailed post on X, Balchunas acknowledged the company’s decision to avoid the crypto economy and block users from accessing approved Bitcoin (BTC) and Ethereum (ETH) ETFs in the United States. He urged the crypto community to accept Vanguard’s decision and move on.
Vanguard’s Ban on Crypto ETF Is Silly
On Wednesday, Vanguard reaffirmed its position by publicly announcing that it will not participate in the newly approved Ethereum ETFs. The asset manager described these funds as “more of a speculation than an investment”.
The company had made a similar statement when Bitcoin ETFs were authorized for trading by the Securities and Exchange Commission (SEC) in January.
Balchunas urged the industry to accept the company’s decision, emphasizing that Vanguard is not a “normal asset manager”.
He disclosed that the firm has been seeing nearly a billion dollars in daily inflow for over a decade and is not interested in competing in the crypto space with other asset issuers.
Regardless, the senior ETF analyst believes the company is making a mistake by depriving their investors the ability to make choices for themselves and participate in the emerging economy.
He further noted that Vanguard has the smartest investors in the world and they can handle making choices for themselves.
“That said, personally I think the ban is silly as it seems like they are playing nanny role. Their investors are the smartest money on the planet IMO, they are not easily misled children, they can handle having choices,” he wrote on X.
US ETF Market Thriving without Vanguard
Despite Vanguard’s ban on crypto ETFs, which prevents their 50 million customers from accessing these funds, the newly launched investment products are thriving without the company.
While the market awaits the final approval of Ethereum spot ETFs from the SEC, the Bitcoin counterparts now hold a total of 4.29% of Bitcoin’s current supply.
Earlier this week, MicroStrategy’s former CEO Michael Saylor noted on X that Bitcoin ETFs globally have reached a significant milestone. According to him, spot BTC issuers around the world now collectively hold 1,002,343 BTC with the US taking the lead.
The eleven ETFs approved by the SEC recorded around $4.6 million on their first day of trading. Since then, these funds have outperformed other Bitcoin ETFs worldwide, including those in the Hong Kong market.
On Tuesday, BlackRock’s iShares Bitcoin Trust (IBIT) became the largest spot Bitcoin ETF in the US by assets under management (AUM), surpassing the Grayscale Bitcoin Trust (GBTC).
According to Bloomberg data, AUM for IBIT reached $19.68 billion, outperforming GBTC, which recorded around $19.65 billion. IBIT took the No. 1 with the remaining 10 ETFs trailing closely behind.
When the funds initially started trading, GBTC led, seeing massive volume of around $28.5 billion. However, the table turned and IBIT took its place.
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