The unsuitability of spot Bitcoin ETFs for long-term investment portfolios is a point that Vanguard CEO Tim Buckley reiterates when asked about the firm’s stance on the matter.
Tim Buckley stressed the importance of the company’s dedication to long-term investing methods by saying that Vanguard would not sell spot Bitcoin ETFs.
According to Vanguard, bitcoin and comparable digital assets do not fulfil the requirements for inclusion in long-term investment portfolios, despite growing inquiries and interest in the cryptocurrency market.
In the interview, Buckley brought up how cryptocurrency is just speculation and how Vanguard is being careful with these digital assets because of the absence of underlying cash flows.
Major shifts and turning points characterize the development of the cryptocurrency industry, which is expanding at an alarming pace. Despite Vanguard’s concerns, new opportunities for institutional investing in cryptocurrencies have emerged with the recent SEC approval of Bitcoin ETFs.
Notable financial companies, such as BlackRock, have joined the cryptocurrency market. The trading volume of BlackRock’s iShares Bitcoin ETF (IBIT) surpassed $3.9 billion, which established a new record. The record-breaking event occurred on March 14th, despite a 6% decline in the Bitcoin price, highlighting the extreme volatility of the cryptocurrency market.
Unless there is a major change in the asset class as a whole, Vanguard will most certainly maintain its current stance on cryptocurrencies, especially Bitcoin ETFs. The firm’s long-term investing strategy is at odds with the highly speculative and mostly unregulated character of the cryptocurrency market, which it has publicly voiced its reservations about. Another piece of evidence of Vanguard’s careful approach to high-risk financial products is the fact that it will not be issuing Bitcoin futures contracts.
Also Read: US senators want crypto ETF approvals halted due to investor risks March 15, 2024
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