Vanguard's Bitcoin ETF Decision. đ§đ€đ„
Vanguard, managing $7.2 trillion, faces scrutiny for avoiding Bitcoin ETFs, citing concerns about Bitcoin's perceived lack of real value and its status as a new and immature asset, potentially posing risks to investment portfolios.
đșLong-Term Portfolios and Crypto:
Janel Jackson from Vanguard asserts that they do not envision launching a Bitcoin ETF, contending that cryptocurrencies, particularly Bitcoin, do not align with the role of a long-term investment in their strategic vision.
đșCrypto as Speculation:
Vanguard firmly positions itself against cryptocurrency, viewing it more as speculation than a traditional investment. This foundational perspective is the driving force behind their decision to abstain from offering crypto products.
đșBlockchain Technology Interest:
Despite dismissing cryptocurrencies, Vanguard showcases a keen interest in blockchain technology, recognizing its potential to enhance capital markets in various scenarios. The company actively explores ways to leverage this transformative technology.
Concerns Addressed by Andrew Kadjeski:
đșInvestor Profiles:
Vanguard's Andrew Kadjeski points out that their investor base, predominantly composed of long-term investors, does not align well with the inherent volatility of cryptocurrencies.
đșVolatility Warning:
Kadjeski underscores Bitcoin's volatility, citing a 150% increase and a subsequent 77% decrease in the last three years. Investors are cautioned about routine double-digit drops in crypto, with an emphasis on the necessity for a 100% return to recover from a 50% loss.
đșVanguard's Approach:
The overarching philosophy at Vanguard revolves around helping investors save more, trade less, and adopt a long-term approach. Their products are designed to promote stability rather than succumbing to short-term trends.
