The $7.7 trillion asset management firm Vanguard has said it will not offer Spot Bitcoin ETFs. Indeed, the firm is, among many others, currently blocking its clients from trading the newly approved Bitcoin investment products.
Before the approval yesterday, Vanguard stated that it would not participate in offering the investment product. Specifically, the firm told Blockworks that it “has no intent to offer a spot Bitcoin ETF or any other crypto-related products.” Additionally, the firm called the investment case for digital assets “weak.”
Also Read: Spot Bitcoin ETF Trading Volume Reaches $1.74B in the First Hour.
Vanguard And Other Firms Not Offering Spot Bitcoin ETFs
The digital asset industry was abuzz yesterday when the US Securities and Exchange Commission (SEC) announced the approval of 11 Spot Bitcoin ETFs. Indeed, the agency reversed course on a decade-long trend of denials.
Subsequent trading for the investment product began as early as Thursday morning, with the first hour producing trading volumes of more than 1.7 billion. However, not all asset management firms approve of the decision. Specifically, $7.7 trillion asset manager Vanguard says it will not offer Spot Bitcoin ETFs.
Also Read: Spot Bitcoin ETFs Begin Trading
Many users have reported that Vanguard and select others are blocking clients from buying Spot Bitcoin ETFs on their platform. Moreover, the decision aligns with the firm’s statement yesterday referencing their perspective on the asset. Specifically, noting the case for investment in the asset class as “weak.”
“Vanguard believes that the investment case for cryptocurrencies is weak,” a spokesperson said. “Unlike stocks and bonds, most crypto assets lack intrinsic economic value and generate no cash flows. And cryptocurrency’s high volatility runs counter to our goal of helping investors generate positive real returns over the long term.”
The decision runs counter to what many of the largest asset management firms in the country have done. BlackRock and Fidelity both issued their own Spot Bitcoin ETFs. Moreover, experts predict that the former could break the inflow record, bringing in $2 billion in Spot Bitcoin ETF inflows in the first trading day.