Vanguard Faces Excessive Backlash For Denying Prospects Entry To Bitcoin Spot ETFs

American Funding administration firm Vanguard Group is at present going through extreme backlash after reportedly rejecting clients’ requests to entry and commerce Spot Bitcoin ETFs on the platform. 

Vanguard Experiences Mass Buyer Exodus

The latest approval of Spot Bitcoin ETFs on Wednesday, January 10, has set off a surge in buying and selling actions amongst quite a few traders. Consequently, funding administration firms like BlackRock have skilled a surge in transactions. 

Regardless of the thrill surrounding the debut of those Spot BTC ETFs, clients with brokerage accounts at Vanguard, one of many world’s most revered funding advisors, had been unable to take part within the buying and selling course of because of restrictions positioned by Vanguard. 

In consequence, a substantial variety of clients holding accounts with the funding administration firm have opted to withdraw their funds and shut their accounts completely. 

Vanessa Harris, a former Vanguard buyer, expressed her frustration on X (previously Twitter) relating to Vanguard’s latest limitations stopping clients from buying and selling Spot BTC ETFs on the platform. 

“Just fully transferred my retirement account from Vanguard Group to Fidelity because Vanguard won’t support Bitcoin ETFs, and appears to be manipulating the price of Bitcoin by only allowing people to sell GBTC, not buy,” Harris said. 

One other X person suggested that people withdraw from Vanguard and transfer to BTC-friendly alternate options like Constancy to start out their Spot Bitcoin ETF trades. 

Vanguard’s resolution to remain on the sidelines of Spot Bitcoin ETFs is seen as a missed alternative to cater to the evolving preferences of their clients. Regardless of the mass withdrawals, the funding administration firm has not indicated any intention to rethink its present coverage in opposition to Spot BTC ETFs. 

BTC begins one other restoration pattern | Supply: BTCUSD on Tradingview.com

Vanguard To Ban All Bitcoin ETFs On Its Platform

Senior ETF Analyst at Bloomberg, Eric Balchunas has just lately taken to X to announce that Vanguard has banned all Spot BTC ETFs from their platform. Regardless of the rising reputation of cryptocurrency investments, Vanguard nonetheless doesn’t endorse investments in BTC or different cryptocurrencies on its platform.

The funding administration firm is understood to have a contentious relationship with cryptocurrencies together with BTC, the world’s largest cryptocurrency. In 2017, the late founding father of Vanguard, John C. Bogle suggested individuals to “avoid Bitcoin like a plague.” 

“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,” the funding administration firm stated. 

Featured picture from Looking for Alpha, chart from Tradingview.com