Different Attitude With BlackRock, Vanguard Rejects Bitcoin ETF

Vanguard admits that it will not offer a Bitcoin ETF to investors. (Photo; Doc. MarketRealist)

JAKARTA - Vanguard Group, one of the world's largest asset managers, is not interested in pursuing a Bitcoin Exchange Traded Fund (ETF). This was stated by Tim Buckley, Chairman and CEO of Vanguard, in an interview on CNBC. According to Buckley, Bitcoin does not fit Vanguard's investment philosophy of focusing on asset classes with intrinsic value and cash flow.

Buckley emphasized that Vanguard will not follow in the footsteps of other companies that have submitted Bitcoin ETF applications to the United States Securities and Exchange Commission (SEC). He said that Vanguard does not use gold as an asset class for their clients, and neither does Bitcoin.

“We will not pursue a Bitcoin ETF, just as we do not use gold as an asset class for our clients,” Buckley said.

He explained that Vanguard has a long-term investment approach based on asset classes that have intrinsic value and cash flow. Buckley said that Bitcoin, like gold, has neither. He also added that Bitcoin is very volatile and unpredictable.

Buckley also shares his views on the current state of the stock and bond markets, as well as investor behavior in the face of rising interest rates. He advised investors to "stay the course" and not be tempted to hold on to cash. He warned that cash carries high earnings risks and could miss out on potential gains from bonds and stocks if the Federal Reserve lowers interest rates.

Buckley stressed the importance of maintaining a long-term perspective and avoiding market timing, which he said was a mistake. He also said that the traditional 60/40 split between stocks and bonds still applies. He said that investors need a steady income stream from bonds alongside the growth potential of equities.

Vanguard is known as one of the world's leading investment companies, with assets under management of $7.2 trillion (IDR 113.1 quadrillion). Vanguard has a reputation as a pioneer in index and exchange-traded fund (ETF) investing. Vanguard has more than 30 million investors worldwide, most of whom follow the long-term investment approach advocated by Buckley.