Vanguard, one of the largest players in the ETF market, has no plans to launch a cryptocurrency ETF. This decision comes directly from the top, with CEO Salim Ramji making it clear that Vanguard isn’t interested in jumping on the crypto bandwagon, especially not just to follow in BlackRock’s footsteps.
When asked about Vanguard’s approach to expanding its offerings, including the potential for crypto ETFs, Ramji said:
“I’m not going to copy competitors. It’s important that a company stay consistent with who they are. Vanguard must look through the lens of our clients. But I want more innovation. We will not be launching crypto ETFs.
Vanguard’s decision to stay away from crypto ETFs isn’t new. The company has never much cared for crypto, viewing them more as a gamble than a solid investment.
According to Vanguard, crypto lacks the economic fundamentals that support other types of investments. They see it as highly speculative, with wild price swings that can wreak havoc on a portfolio.
For Vanguard, the focus has always been on serving its long-term investors. The company’s approach is designed to help people save more and trade less, sticking to the principles that have guided it since its early days.
Offering crypto ETFs would go against that philosophy, according to Ramji. Vanguard doesn’t see a place for crypto in a well-balanced, long-term investment strategy.
The company has a history of steering clear of trendy, high-risk investments, even when they’re popular.
Vanguard didn’t jump on the bandwagon during the internet bubble, and it has stayed away from other speculative investment options in the past.
This decision is in line with its approach of putting clients’ long-term interests first, even if it means missing out on what others might see as big opportunities.
Laurence “Larry” Fink, chairman and chief executive officer of BlackRock
Meanwhile, Vanguard’s top competitor BlackRock has gone all in on crypto, launching the iShares Bitcoin Trust (IBIT) spot Bitcoin ETF in January. And it’s paid off for them.
The asset manager’s Bitcoin ETF saw a massive inflow of cash, hitting $1 billion in investments within a month. By May, IBIT became the world’s largest Bitcoin fund, managing nearly $20 billion in assets.
Big players like Goldman Sachs and Morgan Stanley have also jumped on board, with Morgan Stanley holding a 5.5 million share stake in IBIT, valued at $188 million.
