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Vanguard’s new CEO, Salim Ramji, has confirmed that the investment giant will not launch a Bitcoin ETF, emphasizing the firm's commitment to its investment philosophy. Despite his past involvement with BlackRock's Bitcoin ETF, Ramji believes crypto products remain inconsistent with Vanguard's approach.
Vanguard’s New CEO, Salim Ramji, Reaffirms the Firm’s Stance Against Launching a Spot Bitcoin ETF, Citing Investment Philosophy
According to Cointelegraph, the new CEO of U.S. investing behemoth Vanguard has stated that he will not reverse the company's decision not to launch a spot Bitcoin exchange-traded fund.
Vanguard's new CEO, Salim Ramji, the former head of BlackRock's global ETF division, told Barron's in an interview published on May 15 that the company values consistency and that crypto-related financial products do not fit its "investment philosophy."
"I think it's important for firms to have consistency in terms of what they stand for and the products and services they offer," said Ramji.
"I have heard [chief investment officer] Greg Davis' explanation and I think it is entirely consistent with Vanguard's investment philosophy. It is a logical and consistent point of view," he added.
Ramji handled the January launch of BlackRock's Bitcoin ETF, the iShares Bitcoin Trust (IBIT), which now manages $18 billion in assets.
He has openly professed his interest in cryptocurrency, and his transfer to Vanguard has sparked speculation about the changes he may make at the firm.
Along with BlackRock's ETF debut, rivals Fidelity and nine other investment managers established spot Bitcoin funds, which have received over $12 billion in net inflows. With $8.6 trillion in AUM, Vanguard took a different strategy and did not develop a Bitcoin ETF, regarding cryptocurrency as a speculative investment and an immature asset class.
Vanguard's Stance on Bitcoin ETFs Under Scrutiny as Competitors See Positive Inflows
Bloomberg ETF analyst James Seyffart stated in a May 15 X post that he does not believe Ramji would launch a Vanguard spot Bitcoin ETF.
However, Seyffart stated that Ramji may reconsider the firm's prohibition of clients from purchasing other spot Bitcoin ETFs on its brokerage platform. In March, Tim Buckley, Vanguard's outgoing CEO, stated that a Bitcoin ETF is inappropriate for a long-term retirement strategy since it is a speculative asset.
His comments responded to customer pressure following the debut of competitor firms' Bitcoin ETFs.
In January, a handful of Vanguard clients threatened to close their accounts because the firm banned access to Bitcoin ETFs.
Meanwhile, Vanguard was indirectly exposed to Bitcoin through its investment in MicroStrategy, where it is the second-largest institutional shareholder.
Rival investing businesses are celebrating again as flows turn positive following Bitcoin's 7% rally to regain $66,000 on May 16.
According to preliminary Farside Investors statistics, net inflows for May 15 across all U.S. spot Bitcoin ETFs exceeded $300 million, excluding BlackRock's IBIT, the results of which had yet to be announced.
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