"Wow, I didn't think Vanguard, a giant firm, also knew the nature of fear."
Vanguard, a leading investment management firm, is taking a cautious approach to the cryptocurrency market, which is excited about its spot Bitcoin (BTC) ETF when its clients found themselves unable to participate in the first day of trading for the fund.
This is because Vanguard who thinks the crypto market is speculative and unregulated really believes it contradicts its long-term philosophy, so here it can be seen that the firm does not offer a spot BTC ETF to limit certain types of investments on its platform.
In addition to refusing to give custody of BTC, Vanguard also said other high-risk instruments such as leveraged ETFs are not allowed on the platform.
Vanguard views crypto's extreme volatility as contrary to its mission to help investors earn positive real returns over the long term through ETFs or other digital asset-related products.
Even so, Vanguard's cautious approach may prove to be correct as there was tension on some BTC ETF-listed spots at the open.
For example, clients attempting to invest in BlackRock's Bitcoin ETF (IBIT) through its platform have received notifications stating that trades cannot be completed following regulatory restrictions on trading and settlement limits.
However, the problem does not apply to other platforms such as Charles Schwab where customers can buy spot BTC ETFs using their brokerage accounts and the investment relies on a “Designated Investments Agreement” that recognizes users as experienced investors.
Earlier, experts predicted that on the first day the spot BTC ETF was approved, IBIT Blackrock would see significant inflows into the BTC ETF but unfortunately it was not as easy as many people thought.
