Vanguard Blocks Clients from SEC-Approved Spot Bitcoin ETF Trading – Parofix

[Andrea]

Vanguard Blocks Clients from SEC-Approved Spot Bitcoin ETF Trading



Many investment firms, including Vanguard, are reportedly blocking customers’ spot trading of bitcoin exchange-traded funds (ETFs). “Our view is that these products are not compatible with our offering, which focuses on asset classes such as stocks, bonds and cash,” the firm said. Some customers unhappy with the lack of spot bitcoin ETF options closed their Vanguard accounts and moved their funds to other platforms that offer them.


Vanguard Has No Plans to Offer Spot Bitcoin ETF Trading


Excitement filled financial markets on Thursday as US spot bitcoin exchange-traded funds (ETFs) finally began trading after years of anticipation. The Securities and Exchange Commission (SEC) approved 11 of them on Wednesday.


However, shortly after the market opened, some people posted on social media platform X that their financial institutions, including Vanguard, did not offer spot bitcoin ETFs. A Vanguard spokesperson confirmed to CNBC that the company has no plans to launch its own Bitcoin ETF or list funds from other issuers, saying:

While we are continually evaluating our brokerage offering and evaluating new product introductions to the market, spot Bitcoin ETFs will not be available for purchase on the Vanguard platform. We also have no plans to offer Vanguard bitcoin ETFs or other crypto-related products.

“Our perspective is that these products are not compatible with our offering, which focuses on asset classes such as stocks, bonds and cash that Vanguard views as the building blocks of a balanced, long-term investment portfolio,” the Vanguard spokesperson added. .

Frustrated by Vanguard’s stance on spot bitcoin ETFs, several bitcoin enthusiasts said they were closing their Vanguard accounts and moving their funds to platforms like Fidelity in order to gain access to these newly approved products. Some users have also reported that Vanguard now only allows them to sell their Grayscale Bitcoin Trust (GBTC) holdings, although they were previously able to buy them.

I completely transferred my retirement account from @Vanguard_Group to @Fidelity because Vanguard does not support Bitcoin ETFs and appears to be manipulating the price of Bitcoin by only allowing people to sell GBTC, not buy.

It’s very easy, it only takes 5 minutes. pic.twitter.com/DnzzYu1YPl

— Vanessa Harris (@technologypoet) January 11, 2024

Several other investment banks, including UBS, Morgan Stanley, Bank of America’s Merrill Lynch, Citi and Edward Jones, also reportedly delayed offering spot bitcoin ETFs to clients on the first day. While some plan to offer access in the future, possibly with certain conditions, others have not stated their stance.

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