Vanguard And Others DENY Customers Spot Bitcoin ETF• 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.
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.
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.”
These ETF "stock-blockers" @Vanguard_Group, @Citi @UBS @MerrillLynch, @RaymondJames and @WellsFargo 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,… pic.twitter.com/Mm5KHkXVHI
— Rip VanWinkle ⚡️ (@danieleripoll) January 12, 2024
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.”
Vanguard issues a statement: “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… pic.twitter.com/k8h3sT7fwx
— Bitcoin News (@BitcoinNewsCom) January 12, 2024
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.
I'M SURPRISED. Wow, #Bitcoin #ETFs created an incredible fissure in the fund mgmt industry (many pursued it, many others didn't). Having worked w/ Vanguard in the past to implement a non-crypto #blockchain project, it has GREAT people. I'm sure it's watching the customer feedback https://t.co/bYNhiIRYe4
— Caitlin Long 🔑⚡️🟠 (@CaitlinLong_) January 11, 2024
😠 The #Bitcoin community was shocked that Vanguard and other brokerage firms are ❌ blocking access to the Bitcoin ETFs.
But @EricBalchunas was not 😎 Here’s why 👇
— Laura Shin (@laurashin) January 12, 2024
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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