Summary
Vanguard, a major brokerage platform, is not currently allowing investors to buy newly launched US spot bitcoin ETFs, while rival firms Fidelity and Charles Schwab are offering access to these funds. Vanguard stated that spot bitcoin ETFs do not align with their focus on asset classes such as equities, bonds, and cash. This decision comes as trading volumes for these ETFs reached nearly $3 billion shortly after their launch. Vanguard has previously expressed hesitance towards cryptocurrencies, with a spokesperson stating that the investment case for cryptocurrencies is weak and that they lack intrinsic economic value. However, experts believe that approved spot bitcoin ETFs will eventually become widely available from most registered investment advisers and brokerage firms.
Key Points
1. Vanguard’s brokerage platform does not currently allow investors to buy US spot bitcoin ETFs, while rival firms Fidelity and Charles Schwab do offer access to these funds.
2. Vanguard’s decision to restrict trading of spot bitcoin ETFs comes as the combined trading volumes for these ETFs approached $3 billion in just a few hours on the market.
3. Vanguard’s hesitance to enter the crypto space is not new, as the company’s Chief Investment Officer previously referred to crypto as “more of a speculative asset class” and stated that it doesn’t fit from an investment perspective.