The new Vanguard CEO said that it is important for the firm to stay consistent with their stand on Bitcoin products. He said that they no plans of coming up with an ETF in the near future.
Earlier this week, asset management giant Vanguard announced hiring Salim Ramji, BlackRock’s former global head of iShares and index investments. Well, this led to strong speculation in the market that Vanguard too will consider shifting gears and offering Bitcoin ETF exposure to its clients.
Previously, Vanguard had rejected offering Bitcoin ETF services to clients while calling Bitcoin an immature asset class. Ramji has confirmed that Vanguard won’t move away from its previous decision.
In an interview published with Barron’s the new Vanguard CEO stated that the company stands for its consistency and crypto-related investment products don’t align with its “investment philosophy”. He added:
“I think it’s important for firms to have consistency in terms of what they stand for and the products and services they offer. I have heard [chief investment officer] Greg Davis’ explanation and I think it is entirely consistent with Vanguard’s investment philosophy. It is a logical and consistent point of view.”
Ramji was instrumental in the launch of BlackRock’s spot Bitcoin ETF IBIT earlier this year in January. Within just three months of launch, the iShares Bitcoin Trust (IBIT) has now amassed a total of $18 billion in assets under management.
Previously, Ramji was open to sharing his interest in crypto. This led many to speculate whether the move to Vanguard could lead to some developments on the Bitcoin ETF part.
Vanguard Takes Different Approach from Peers
Some of the top financial giants like BlackRock and Fidelity have joined the Bitcoin ETF from the very beginning and were instrumental in seeking approval. Both of these players combined manage a total of $24 billion worth of assets in BITB and FBTC.
However, despite its $8.6 trillion in assets under management, Vanguard took a different approach. The company continues to view it as a speculative investment. Several market analysts said that Ramji joining Vanguard won’t change anything on the company’s stand for Bitcoin.
In a May 15 post on X, Bloomberg ETF analyst James Seyffart expressed skepticism about Ramji’s potential to introduce a Vanguard spot Bitcoin ETF. However, Seyffart suggested that Ramji could reconsider the firm’s stance on permitting clients to purchase other spot Bitcoin ETFs on its brokerage platform.
However, the Bitcoin ETFs have seen strong growth since launch. In the first three months of launch, all the US Bitcoin ETFs combined have more than $12 billion in assets under management.
next