In a recent report, the giant asset manager Vanguard restricted customers from using the newly approved spot Bitcoin exchange-traded funds (ETFs). The decision to limit the customers from using the Bitcoin EFT ignited criticism from the crypto community.
Some Vanguard users threaten to exit the platform due to barriers levied on the use of spot Bitcoin ETFs.
Bitcoin ETF Fails to Meet Vanguard Investment Needs
Addressing the Wall Street Journal, the Vanguard team regretted that it would not offer the Bitcoin ETFs on its brokerage platform to uphold compliance with the existing corporate law.
In the report, the troubled asset manager lamented that introducing the Bitcoin ETFs to its brokerage platform could undermine the offering of traditional financial products. This forced the Vanguard team to restrict the use of Bitcoin ETF when obtaining brokerage services.
The asset manager added that the Vanguard team has no plans to introduce a Bitcoin ETF soon. According to the report, the Bitcoin ETFs allow investors to tap into the benefits of Bitcoin even without investing in the buying and selling crypto assets.
Despite the numerous benefits offered by the Bitcoin ETFs, the Vanguard team regretted that these financial products do not support asset classes offered by the Pennsylvania-based investment company.
A review of the Vanguard website demonstrated that the company offers different asset classes, including equities, cash, and bonds. These asset groups support the Vanguard investment portfolios and enable the asset manager to offer incredible investment and financial insights to investors, businesses, and organizations.
Vanguard Fails to Support Bitcoin ETFs
Even though Vanguard did not join Bitcoin ETF hopefuls to convince the US Securities and Exchange Commission of the need to offer these financial products, the asset managers had no plans of offering Bitcoin Funds.
In an earlier interview, the Vanguard spokesperson expressed the unwillingness of the asset manager to offer the Bitcoin ETF. The spokesperson claimed that the spot Bitcoin ETFs failed to blend with the needs of the Vanguard investment portfolio.
Based on the diverse need for the Vanguard investment portfolio, the spokesperson confessed that the investors are urged to convert their spot crypto ETF to Grayscale Bitcoin Trust or Fidelity.
Following the announcement that the Vanguard team will no longer facilitate buying and selling brokerage services using the Bitcoin ETFs, key industry players revealed plans to withdraw their assets from the platform.
A statement from the senior engineering manager at Coinbase, Yuga Cohler, confirmed that he will convert his Roth 401(k) savings from Vanguard to Fidelity.The executive stated that blocking Bitcoin ETF on Vanguard failed to meet his investment objective.
Investment Service Providers Contemplates on Offering Bitcoin ETFs
Elsewhere, Neil Jacobs described the Vanguard outlook of Bitcoin ETFs as a terrible business decision. In response to the January 11 announcement, Jacobs revealed plans to transfer funds from Vanguard to other Bitcoin ETF issuers.
Upon contacting the Vanguard user to inquire whether it was possible to purchase Bitcoin ETFs on the brokerage platform, the customers confirmed that the Bitcoin Fund feature was unavailable. Customers from other investment companies such as Citi, Edward Jones, UBS, and Merill Lynch complained that they could not access the Bitcoin ETF feature on Vanguard.
A statement from the UBS spokesperson demonstrated that the investment company accepted unsolicited offers for Bitcoin ETF. The official stated that the Bitcoin ETF can only be offered on brokerage platforms and perfectly meets the needs of aggressive investors.
In support of this, an official from Citi confirmed that the investment company will offer Bitcoin ETFs to institutional clients. Currently, Citi officials are examining the suitability of offering Bitcoin Funds to wealthy clients.
Elsewhere, the American-based investment company Merrill Lynch confirmed that following the approval of the Bitcoin ETF, the company plans to evaluate the efficiency of providing this product. The Merrill Lynch team vowed to conduct extensive research before introducing Bitcoin-related products.