thenewscrypto.com
- Buckley went on to say that Bitcoin is only a speculation asset.
- The cryptocurrency sector as a whole is very speculative and unregulated as per the firm.
Investment banking behemoth Vanguard’s chairman of the board and chief executive officer Tim Buckley has reiterated his firm’s intention to stay out of the spot Bitcoin exchange-traded fund market.
According to Buckley, his company has been getting a lot of inquiries on the timing of potential spot Bitcoin exchange-traded funds. According to him, they were even asked when the company might reconsider the product. In response, Vanguard’s chief executive officer restated the company’s position on spot Bitcoin exchange-traded funds (ETFs), but with a caveat.
Firm and Sharp Stance
Buckley claims that a shift in Bitcoin’s asset class is the one scenario in which Vanguard may contemplate entering the spot Bitcoin ETF market. As per the CEO, “it does not belong in a long-term portfolio” and “it’s not a store of value.” That is Vanguard’s position on Bitcoin exchange-traded funds. Buckley went on to say that Bitcoin is only a speculation asset as it lacks underlying cash flow.
For what seems like an eternity, Vanguard has been adamant about its “no-crypto” position. Not long after the eleven spot Bitcoin ETFs were greenlit by the U.S SEC, Vanguard made it plain that it would not be embracing the likes of BlackRock and Grayscale Investments. The investment management company eliminated Bitcoin futures contracts from its brokerage services to further emphasize their viewpoint.
Some of the reasons given by Vanguard include the fact that the cryptocurrency sector as a whole is very speculative and unregulated. These characteristics are at odds with the firm’s current long-term investment policy, as it was pointed out. Not only is Vanguard wary about Bitcoin, but it has no plans to offer any other high-risk product.