Vanguard, a financial giant, has said that it has no plans to offer a Bitcoin ETF. Not that there is any predictable timeline; the company has downplayed the plan to offer the product at any time in the future.
Meaning that Vanguard is simply not impressed with what Bitcoin ETF has to offer and, therefore, has no plans to introduce it to its customers. Calling it an immature asset class, the executive from Vanguard has said that it does not have any inherent economic value.
To be more specific, Janel Jackson took center stage recently to talk about her company’s plans to offer a Bitcoin ETF. The Global Head of ETF Capital Markets at Vanguard first highlighted that the company has a rigorous process for listing a product for its customers. She then went on to say that the company looks at the Bitcoin ETF more as speculation than an investment product.
Bitcoin is officially a commodity, courtesy of the approval of the US SEC, effective January 10, 2024. Janel has further highlighted that Bitcoin can potentially create havoc in a trader’s portfolio. According to her statement, only commodities that meet consumption needs and have inflation-hedging properties truly make up for the offering. More pick-points from her statement highlight why equities and bonds are better options than Bitcoin.
Equities give the trader a share of the company along with regular dividends, while bonds provide interest payments.
That said, Janel has not completely downplayed the segment. She said that Vanguard has a strong feeling for blockchain technology. It can come in handy to increase the efficiency of the capital market. Blockchain technology is the basic foundation of cryptocurrencies.
Not just the Bitcoin ETF, but any other crypto ETF that may come in the future is less likely to be listed at Vanguard. The reasons are the same: they come at a time when the crypto community is speculating on the approval of the ETH ETF. By the end of this year, the XRP ETF could follow.
The Bitcoin price was last seen being traded at $42,174.68, down by 0.53% in the last 24 hours. Its market cap is down by 0.53%, touching $827 billion, with the 24-hour volume up by 10.65%. The token has apparently found a soft spot between $41,000 and $42,000. This has been credited to the shift of the CFGI from greed to neutral.
As Vanguard downplays the possibility of listing crypto ETFs on the platform, the Index shows that the community could soon be in for a significant upward trajectory.
A stand by the financial giant depicts that no matter where Bitcoin dances on the graph, there will always be concerns about it—and rightly so. Before the approval, analysts had hinted that the Bitcoin ETF may lead to an increase in market manipulation and AML exploitation. The ETF product is new, and the after-effects of approving it are yet to be seen in the market.