Reasons Behind Vanguard’s Stance
Vanguard CEO Tim Buckley has reaffirmed the company’s opposition to offering spot Bitcoin ETFs. He cited several reasons:
- High Volatility: Buckley believes Bitcoin is too volatile to be a suitable long-term investment. He pointed out its recent decline alongside the stock market.
- Lack of Tangible Value: Vanguard prefers assets with tangible cash flow, such as stocks or bonds, which Bitcoin currently lacks.
Growing Demand for Bitcoin ETFs
Despite Vanguard’s stance, other asset managers have embraced spot Bitcoin ETFs. For example:
- Cetera, a San Diego-based firm, has added four BTC ETFs to its investment options.
- Patient Capital, a $1.8 billion asset manager, is seeking SEC approval to convert 15% of its holdings to Bitcoin ETFs.
Market Impact
The launch of spot Bitcoin ETFs has driven up institutional demand for Bitcoin. Over the past two months, these ETFs have gained a net flow of $11.95 billion.
Current Bitcoin Price
As of this writing, Bitcoin is trading at $69,260.35, attempting to rebound after a recent price correction.
