ETF inventor not in favor! Vanguard pioneers withdraw from Bitcoin futures, solidifying position against "cryptocurrency" investments.

The Vanguard Group, a leading U.S. asset management giant, has recently confirmed its strengthened "no cryptocurrency" investment policy, including the withdrawal of Bitcoin futures from its platform. This stands in contrast to the recent stance of financial institutions such as BlackRock embracing cryptocurrency-related products.

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Vanguard Withdraws from Bitcoin Futures

Going against the current Wall Street trend, Vanguard has decided to pull out of Bitcoin futures from its brokerage services. This decision not only reinforces its stance against Bitcoin spot ETFs but also signifies its unwillingness to engage in any form of cryptocurrency investment.

Wowza. @Vanguard_Group doubling down on that anti-crypto business strategy:

“In addition to spot Bitcoin ETFs not being available for purchase on the Vanguard platform, effective immediately, Vanguard will no longer accept the purchase of cryptocurrency products, including…

— Eleanor Terrett (@EleanorTerrett) January 12, 2024

Divergent Paths of Wall Street Giants

While other financial giants like BlackRock, Invesco, and Fidelity embrace cryptocurrencies and launch their own Bitcoin ETFs, Vanguard chooses to stand firm. This highlights Vanguard's commitment to traditional investment values and its decision to steer clear of the emerging digital currency market.

Statement from Company Spokesperson

A spokesperson for Vanguard expressed the company's dedication to prioritizing long-term investment strategies, stating, "This change enables us to focus on delivering a core set of products and services consistent with our commitment to serving long-term investors."

Strategic Stance Behind ETF Innovator Vanguard

Vanguard's decision aligns with its long-standing investment philosophy, reflecting the beliefs of its late founder, John Bogle.

In fact, Vanguard is the world's first ETF innovator, with founder Jack Bogle launching the first index fund, the Vanguard 500 Index Fund, in 1976. The evolution of ETFs expanded from stocks to bonds, then to commodities.

John Bogle was renowned for advocating simple, low-cost investments rather than speculative risks, shaping the company's cautious approach towards trends like cryptocurrencies and high-risk investments.

Community Reaction on Social Media

This decision has stirred up social media, with some claiming to be Vanguard customers expressing dissatisfaction with the inability to adopt crypto products.

Bloomberg analyst Eric Balchunas commented that Vanguard's anti-Bitcoin ETF stance is entirely to maintain the founder's investment style. However, such a stance may change in a few years as they have built their own advisory business and need alternative assets.

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Vanguard’s anti-bitcoin ETF stance is totally on brand and would’ve made Bogle proud. That said, I think they will soften in the coming years as they build their advisory biz, they’ll need to have access to alts. They recently got into PE for this reason. I wrote about it today. pic.twitter.com/AFaD85B5ZR

— Eric Balchunas (@EricBalchunas) January 12, 2024

Not only Vanguard, but Merrill Lynch is also taking a cautious stance on Bitcoin ETFs and will decide whether to change its past blanket rejection of such products after evaluating trading conditions.

Bitcoin still not favored? Large brokerages Merrill Lynch and Vanguard do not offer Bitcoin ETFs, while UBS and Citigroup are evaluating.