Vanguard And Others DENY Customers Spot Bitcoin ETF

By Vince • January 12, 2024 1:34 pm • Comments

The crypto community is rife with utter shock and disbelief at the sudden and unexpected move from Vanguard and other investment brokerage firms.

Vanguard, along with CITI, Wells Fargo, and others have all announced that they will not be allowing their customers to trade the spot Bitcoin ETF.

These investment giants made no announcement beforehand, clients and customers of these banks and investment firms simply found out when they tried to execute trades.

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Perhaps pressure and time will change the current positions of these firms. One member of the crypto community spoke out and shared his thoughts:

“These ETF “stock-blockers” Vanguard Group, Citi, UBS, Merrill-Lynch, Raymond James, and Wells Fargo are already seeing billions of dollars flowing out of their firms toward Bitcoin-friendly companies.

People had been planning and waiting to buy the Bitcoin spot ETF for months, only to find out today that they couldn’t buy it because those firms were blocking it. No warning. No notice. Just denial.

Nothing pisses off clients more than messing with their money. Many have already started the process of moving their assets to Fidelity. Fidelity is a big winner here. Others may decide to just own spot BTC.

If firms want to block access, then more people will come into BTC directly and take custody of their keys.

The more these Scrooges fight Bitcoin, the stronger it gets. Bitcoin’s incentives are undefeated. They will all, eventually, bend the knee.”

Bitcoin News provided this statement from Vanguard: “Spot Bitcoin ETFs will not be available for purchase on the Vanguard platform.

Our perspective is that these products do not align with our offer focused on asset classes such as equities, bonds, and cash, which Vanguard views as the building blocks of a well-balanced, long-term investment portfolio.”

Cryptonomist speculated as to the reason for the blocking of the Bitcoin ETFs:

It should not be forgotten that this year there are elections in the USA, and that the Democratic Party as a whole seems to be against cryptocurrencies.

It is possible that Vanguard, with this move, wanted to try to gain support among Democratic investors, or that it wanted to ingratiate itself with Democratic politicians.

If, as it seems possible, the Republicans win the elections, it could also decide in the future to reverse the decision.

Many other investors, speculators, and members of the crypto community expressed shock and disbelief at the recent move from Vanguard and others to block the Bitcoin ETF.

Watcher Guru provided another statement from Vanguard:

“Vanguard believes that the investment case for cryptocurrencies is weak.

Unlike stocks and bonds, most crypto assets lack intrinsic economic value and generate no cash flows.

And cryptocurrency’s high volatility runs counter to our goal of helping investors generate positive real returns over the long term.”

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