Vanguard CEO Reiterates Absence of Bitcoin ETF Launch Plans Despite Industry Enthusiasm

Vanguard’s newly appointed CEO, Salim Ramji, has confirmed that the company will not be launching a Bitcoin exchange-traded fund (ETF), despite industry interest. In an interview with Barron’s, Ramji stated that Vanguard remains committed to consistency and that cryptocurrency-related investment products do not align with the firm’s investment philosophy. Ramji expressed his support for Vanguard’s Chief Investment Officer, Greg Davis, and his decision to avoid a Bitcoin ETF, stating that it is in line with Vanguard’s investment philosophy.
Ramji, who previously oversaw the launch of BlackRock’s spot Bitcoin ETF, iShares Bitcoin Trust (IBIT), has been speculated to potentially introduce changes at Vanguard. However, Vanguard, with its $8.6 trillion in assets under management, takes a different stance on cryptocurrencies, viewing them as speculative investments in the early stages of development. While Bloomberg ETF analyst James Seyffart does not believe that Ramji will introduce a Vanguard spot Bitcoin ETF, he suggests that Ramji may reconsider Vanguard’s position on allowing clients to purchase other spot Bitcoin ETFs on Vanguard’s brokerage platform.
Vanguard’s outgoing CEO, Tim Buckley, previously stated that a Bitcoin ETF is not suitable for long-term retirement portfolios, describing it as a speculative asset. This decision by Vanguard led to dissatisfaction among customers when access to spot Bitcoin ETFs was blocked after their launch by rival firms. However, it is worth noting that Vanguard indirectly holds exposure to Bitcoin through its stake in MicroStrategy, where it is the second-largest institutional shareholder.
While Vanguard remains firm in its decision to avoid a Bitcoin ETF, other investment firms are experiencing positive flows as Bitcoin surged to $66,000 on May 16. Preliminary data from Farside Investors shows that net inflows for May 15 across all U.S. spot Bitcoin ETFs exceeded $300 million, excluding BlackRock’s IBIT. Morgan Stanley is exploring the possibility of expanding its sales of Bitcoin ETFs by allowing its brokers to actively recommend these products to customers. Currently, Morgan Stanley offers Bitcoin ETFs on an unsolicited basis, requiring customers to approach their advisors independently. LPL Financial also announced plans to evaluate which Bitcoin funds it could offer to customers.